HPDBC Chapter 554: The Idea of Going Public
Chapter 554: The Idea of Going Public
More than a month later, Huang Dahai left again, but this time he went to school.
And it was the start of the new semester at the University of Finance and Economics again. As is customary, Huang Xiaochuan returned to the school to prepare for the start of the semester.
The road and bridge donated in Lao Huang's name are proceeding in an orderly manner. These matters are being followed up by specialists, so Huang Xiaochuan doesn't need to worry about them at all. On the contrary, Lao Huang is always concerned about it, so Huang Xiaochuan arranges for a car to take Lao Huang to check on the progress every now and then.
Actually, Huang Xiaochuan knew that Lao Huang wanted to show off in front of his hometown people. Huang Xiaochuan could guess this little thought. It was a small matter, he would arrange it!
Huang Xiaochuan, who had just arrived at work in the afternoon, brewed a pot of tea in his office. An Cheng and Ma Yifeng walked in without even knocking.
Huang Xiaochuan gave the two of them a disapproving look: "How rude! Didn't you even knock before coming in?"
Ma Yifeng looked completely unconcerned. He casually sat down opposite Huang Xiaochuan, sniffed the air, and exclaimed, "It smells so good! Quickly pour me a glass!"
People from southern Fujian are probably all fond of tea; they can't resist the aroma of tea, and Ma Yifeng, a native of Anxi, is no exception.
Huang Xiaochuan poured a cup of tea for each of them.
He asked, "How did you two end up together?"
Ma Yifeng said casually, "I ran into Lao An at the school gate. He said he was looking for you, and I figured I hadn't seen you all summer, so I thought I'd come see you and see if you've gained or lost weight!"
Huang Xiaochuan rolled his eyes at Ma Yifeng: "I don't need your concern. I'm fine, I haven't gained or lost weight!"
Then he asked An Cheng, "Old An, you wouldn't come looking for me if there wasn't something wrong. So, what's up this time?"
An Cheng really did have something to discuss with Huang Xiaochuan. He and Jiao Zhiyong had an idea and wanted to discuss it with Huang Xiaochuan to see if it was feasible!
After finishing his tea in his small teacup, An Cheng said, "Old Jiao and I have an idea. I also mentioned it to Old Ma when I came to your office earlier. We mainly wanted to get your opinion."
Huang Xiaochuan adopted a posture of listening attentively.
An Cheng continued, "Jiao and I discussed it and felt that we could work towards going public. However, whether the company goes public or not depends on your consent first, since you have the most shares, Lao Huang."
Huang Xiaochuan smiled. It seemed that An Cheng and Jiao Zhiyong had already studied the benefits of the company going public.
Firstly, it allows one to obtain a large amount of funds at a low cost without having to repay the principal, thus avoiding debt pressure.
Furthermore, they can continue to raise funds by issuing new shares or bonds, which is very low-cost and far more cost-effective than taking out bank loans.
Furthermore, companies that can go public must have certain strengths. The listing process and the subsequent financial reporting will attract public attention, which can increase public awareness.
In Huang Xiaochuan's view, what Ancheng and Jiao Zhiyong valued most was the ease of realizing equity value.
It's currently a four-person partnership. If one party wants to withdraw, they need to find a buyer. Moreover, the partnership agreement originally signed states that the other shareholders have priority, but the price is not so easy to control.
However, after going public, things become simpler. If Ancheng wants to cash out a portion of its shares, it can do so directly through the secondary market.
Moreover, based on the company's current performance and revenue, their net worth will skyrocket after the company goes public, because the company's financial reports are simply too good!
Huang Xiaochuan was naturally happy to see this happen; let's go public!
Without the slightest hesitation, he said, "Okay! I agree to the company going public."
An Cheng and Ma Yifeng were stunned for a moment because they didn't expect Huang Xiaochuan to agree so readily.
"Hey hey hey! What are you two doing, acting all silly?" Huang Xiaochuan wanted to laugh when he saw the two of them. Was it really necessary to be like this?
Seeing that Huang Xiaochuan supported the listing, Ancheng posed another question: "Old Huang, where do you think we should list? The Shanghai Stock Exchange or the Shenzhen Stock Exchange?"
Huang Xiaochuan calmly poured tea into their teacups again and gestured for them to drink.
He then said to An Cheng, "This matter is difficult in some ways, and easy in others."
"If you want to do this on your own, it will be very difficult. But if you let a professional institution do it, it will be much easier. However, listing a company involves multiple aspects such as law, finance, underwriters, and regulatory authorities. The best way is to find a strong investment bank or securities company to take the lead in this matter."
Hearing that Huang Xiaochuan's matter was promising, An Cheng and Ma Yifeng immediately perked up. Ma Yifeng even urged, "Then hurry up and tell us. We didn't expect you to know so much. Luckily, we came to ask you."
Huang Xiaochuan calmly took a sip of tea before continuing, "Letting investment banks or securities companies lead the entire listing process, taking charge of the company's valuation, roadshow, stock issuance and sales, is called letting professionals do professional things."
Additionally, a reliable law firm needs to be found to ensure the listing complies with legal requirements and to help handle any potential legal risks. An accounting firm also needs to be hired to audit the finances to ensure they meet the requirements for listed companies. I'm not very familiar with the details of listing in China, but overseas listed companies usually hire public relations firms for publicity and crisis management.
Upon hearing this, An Cheng's jaw nearly dropped to the tea table: "Wow, is it that complicated?"
Huang Xiaochuan was speechless: "What do you think? You think it's all just a matter of saying a few words and it's done?"
Ma Yifeng, who was listening intently, was annoyed that An Cheng had interrupted Huang Xiaochuan. He covered An Cheng's mouth and said, "Old An, don't talk. Let Old Huang speak."
Huang Xiaochuan shut his mouth and began to slowly sip his tea.
Ma Yifeng grew impatient: "Old Huang, please continue!"
Huang Xiaochuan slammed his teacup down on the table and spread his hands: "That's all!"
"That's it? Is that all?" Ma Yifeng was still listening with great interest when Huang Xiaochuan suddenly said that was it.
Huang Xiaochuan said unhappily, "I've already explained the general process of going public. What more do you want? I'm not a professional organization. Everyone has their own expertise. In short, you have to find a professional organization to handle the going public process."
An Cheng asked another question: "That must cost a lot of money, right?"
Before Huang Xiaochuan could speak, Ma Yifeng cut An Cheng off.
"What are you saying? Who hires someone without paying them? Do you, Old An, want to be a skinflint?"
Huang Xiaochuan nodded and added, "Compared to the benefits of going public, spending this amount of money is a small matter."
An Cheng glanced at Huang Xiaochuan, then at Ma Yifeng, and gritted his teeth: "Then let's do it. But Lao Huang, isn't your classmate surnamed Ding at the China Securities Regulatory Commission? Could you ask him to recommend a few reliable investment banks and institutions?"
Huang Xiaochuan waved his hand: "You can't ask him for this. I'll have someone compile a list for you later. You can consult with each company one by one before deciding which one to cooperate with."
Upon hearing this, An Cheng beamed with joy: "Alright, then I'll be waiting for your table of contents!"
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