Reborn as a Hong Kong Tycoon

Chapter 397 Issue of additional shares (two in one)

The call was from Shen Congee, the senior class of HSBC. During the call, Shen Congee said that he wanted to visit Lin Baicheng and chat with Lin Baicheng face to face.

Lin Baicheng speculated about Shen Congee's intention of visiting, and he agreed without hesitation. After Shen Congee said he would come to Hutchison Whampoa in a while, he said that he would wait for him at the company.

"It's going to be urgent."

After hanging up the phone, Lin Baicheng sneered.

Lin Baicheng guessed Shen Congee's general idea. After all, Hutchison Whampoa raised funds in HSBC for one year, and the interest alone exceeded 1.3 million US dollars, which is about 5.5 million Hong Kong dollars. This is a huge sum.

Today, Hutchison Whampoa's investment is transferred to a third party, which means that it will continue to invest, but will not raise funds from HSBC. Heartache is not in a hurry.

More than half an hour later, Shen Congee came to Hutchison Whampoa, and Lin Baicheng entertained Shen Congee in the office.

"Shen Daban, welcome!" "Lin Sheng!"

The two shook hands and sat down on the sofa.

Secretary Chen Huixiang came in with coffee, set it up and went out.

The two chatted for a while, and Shen Congee said bluntly: "Lin Sheng, I won't go around in circles. I came to visit today to chat with you, Lin Sheng. I hope that HSBC, Hutchison Whampoa and you can continue to cooperate in the future. .”

Lin Baicheng pretended to be stupid and said, "Mr. Shen, we talked about this topic last year. I have already said that we will continue to cooperate with HSBC."

"It's good that Lin Sheng is willing to continue to cooperate."

Shen Congee smiled and said: "Hutchison Whampoa announced that it will hand over the principal of 2 million US dollars to a third-party company to operate on its behalf. If there is a need for financing, HSBC is very happy to provide funds and give preferential treatment in terms of financing interest." .”

Lin Baicheng secretly thought that sure enough, but said in his mouth: "I will inform Wade Investment Company about this matter. If necessary, I think they will contact HSBC."

Looking at Lin Baicheng, Shen Porridge could not help persuading: "Lin Sheng, your own investment level is so high, why bother to hand over the funds to a third-party company for operation, this can save 10% of the profit management fee. You own Half of the shares in Hutchison is equivalent to saving 5% of the profit management fee for yourself.”

"Besides, the financing interest I offered must be lower than other banks, with an annual interest rate of 8%. I don't think Wade Investment Company can get such a low interest rate from other banks."

"Shen Daban, I have already made a decision regarding Hutchison's investment, and I will not make any changes lightly."

Lin Baicheng shook his head and declined politely, he was too entangled, he still hinted: "Shen Daban, He Huang handed over the funds to Wade Investment Company to operate, so that even if someone has any idea, want to short He Huang or something, they will not be able to find out The details of Hutchison’s investment.”

Shen Congee's face changed slightly: "Lin Sheng, I will let the bank keep the investment account of He Huang under strict custody, and no one will know except a few high-level people."

"Shen Dapan, Hehuang has been shorted twice."

After hearing Shen Congee's words, Lin Baicheng simply stated: "I don't want similar things to happen to Hutchison again, so I have to keep Hutchison's investment account confidential. Only by handing it over to a third-party company can I guarantee Hutchison's investment The details will not be found out by interested people."

"Lin Sheng is overthinking."

Shen Congee smiled awkwardly, Lin Baicheng had already said that, what else could he say, after all, there was a criminal record there.

Lin Baicheng didn't want to embarrass Shen Congee, so he changed the subject and said, "Daban Shen, you don't have to worry about the cooperation between Hutchison Huang and myself with HSBC. The only thing to worry about is that I am worried that HSBC will not cooperate with me. , you HSBC is everyone's God of Wealth."

"That's for ordinary people. If it's Lin Shengyou, it should be our bank serving big customers."

What Shen Congee said was the truth from the bottom of his heart. Facing ordinary businessmen, the bank is the God of Wealth, but if it were replaced by Lin Baicheng, he would be a big customer of the bank. What the bank should do is to keep the big customers.

Lin Baicheng did not object to Shen Congee's words, and said: "Hutchison will increase investment in real estate this year, and the development of the real estate industry must find bank loans. At that time, I hope that HSBC can give Hutchison more loans. Give preferential treatment in terms of interest.”

"No problem, HSBC will definitely give Hutchison a lower interest rate than its peers."

Shen Congee immediately agreed and promised to give lower interest rates.The reason why he said this is mainly because he wanted to repair the relationship between HSBC and Lin Baicheng through interest rate cuts, so that Lin Baicheng and Lin Baicheng's enterprises can think of HSBC immediately when they have financing or loan needs.

"Then I'll thank Taiban Shen first here."

Lin Baicheng was also very happy to hear that Hutchison Whampoa must develop vigorously without the support of the bank. Now that HSBC is willing to offer lower interest rates, that is of course a good thing.

Shen Porridge said politely: "Lin Sheng is being polite, it should be HSBC thanking you for taking care of HSBC's business."

"Daban Shen, there is something I want to ask you."

Lin Baicheng thought for a while and said, "If I want Hutchison to issue additional shares at a certain time, what should I do?"

Issuing additional shares is actually increasing the company's total share capital and diluting the shares of all shareholders. However, the additional issuance of shares can increase the company's corresponding funds and increase the total market value accordingly, without harming the interests of the original shareholders.

"Issuing additional shares? HSBC has this business and the ability."

Shen Congee couldn't help but cheer up when he heard the words: "Xiangjiang is no better than London. The Hong Kong government's supervision of the stock market is not strict. The supervisory committee was only established after the stock market crash broke out a few years ago. Therefore, if a company wants to issue additional shares, it mainly depends on the stock market. Whether this company can be recognized by the market, and whether the shareholders are willing to pay for it."

"If a company does not operate well and its performance is poor, then the stock price of this company must be very low, the trend is not good, and the shareholders are unwilling to buy it. In this case, if the company chooses to issue additional shares, the shareholders will definitely not Will pay the bill, and the result will only be a sharp drop in stock prices, so companies with poor performance usually do not issue additional shares.”

"However, if a company with good performance issues additional shares to the market, it first depends on the specific amount of the additional issue, and then it also depends on the company's stock market. If the stock price is also lying on the ground, then the additional issue of shares is also meaningless. "

"Only when the company's performance is good and the stock price trend is at a high level, then it is meaningful to issue additional shares. First, the company can issue additional shares at a high level to obtain more funds; second, shareholders are optimistic about the company and are willing to pay the bill, and the additional issue of shares will be successful. .”

"Hutchison's current performance is good, the stock price trend is very good, and shareholders are also very recognized for Hutchison's stock, so there is no problem with Hutchison's additional shares. The only restriction is that the additional shares cannot exceed 30% of the total share capital. For example, the current total share capital of 4 million shares cannot exceed 1.2 million shares.”

"If Lin Sheng entrusts this matter to HSBC, HSBC will only charge 4% of the handling fee. You must know that the usual charge for this kind of business is 5% of the market value of additional shares. You can check this point, Lin Sheng. .”

"Moreover, HSBC is not without paying. When the stock is issued additionally, HSBC will invest in buying part of the additionally issued stock, and use HSBC's contacts to promote the additionally issued stock, and buy as many stocks as possible."

"The fewer stocks flow into the stock market, the less capital to attract shareholders, and the smaller the impact on Hutchison's stock price. It will not happen that Hutchison's stock price plummets just after Hutchison issued additional shares."

Related financial business is the main business of the bank, so Shen Porridge strongly recommends HSBC.Based on the current market value of Hutchison Whampoa, the market value of the additional stock will be at least 10 billion Hong Kong dollars, and the handling fee that HSBC can earn is 4000 million Hong Kong dollars, and HSBC's expenditure is nothing more than some manpower, not to mention that he thinks that the market value of the additional stock is very high. It may be more than 10 billion Hong Kong dollars. After all, Hutchison Whampoa can choose to borrow only 10 billion Hong Kong dollars.

"I'm still just thinking about this matter, and I haven't decided whether to issue additional shares, so I can't promise you Dapan Shen right now."

Lin Baicheng shook his head, but after listening to Shen Congee's explanation, he had a more detailed understanding of additional stock issuance.

"If Lin Sheng wants Hutchison to issue additional shares, please hand over this business to HSBC."

Shen Congee immediately said that in his opinion, since Lin Baicheng had this idea, sooner or later he would choose to issue additional shares.

"Lin Sheng, if He Huang wants to issue additional shares, the market value of the additional shares will not be less than 10 billion Hong Kong dollars, right?"

"If possible, my initial idea is to issue 1 million additional shares, which is 25% of the total share capital. If the amount is too high, it is not unacceptable to reduce the additional issue ratio."

Lin Baicheng revealed a little bit that since he wanted to cut leeks at a high position, of course he should cut as much as possible.

"so much?!"

Shen Congee couldn't help being surprised when he heard this.

Not to mention the calculation based on the current stock price of Hutchison Whampoa, even if it is only calculated based on the stock price of Hutchison Whampoa at 50 Hong Kong dollars per share, the additional issuance of 1 million shares is equivalent to a market value of 50 billion Hong Kong dollars. HSBC can find a way to absorb 20% of this amount at most. The remaining 40 billion Hong Kong dollars worth of stocks flowing into the stock market will inevitably put pressure on the stock price of Hutchison Whampoa. At the same time, it is hard to say whether there will be so many investors buying stocks with such a market value.

"Lin Sheng, Hutchison's current market capitalization is more than 200 billion Hong Kong dollars, one-tenth of which is more than 60 billion Hong Kong dollars. I am afraid that the shareholders will not have so much money to buy the additional shares, and the additional shares will not be sold."

"This is just my preliminary thoughts. I will discuss these matters after I decide to allow Hutchison to issue additional shares."

Lin Baicheng shook his head and didn't intend to talk too much, he said: "Dapan Shen, what I want to know is, if He Huang wants to issue additional shares, can they issue additional shares immediately?"

"Although this is true, it is best to make preliminary preparations one month in advance, so that HSBC can have time to sell and digest some stocks, and at the same time, investors who intend to buy will also prepare funds in advance." Shen Congee said.

"That's true."

Lin Baicheng nodded involuntarily, and then thanked Shen Congee.

Shen Congee repeatedly stated that this is what he should do, and asked Lin Baicheng to remember to find him after he intends to let Hutchison Whampoa issue additional shares, and hand over this business to HSBC, saying that HSBC will definitely handle this matter well by then.

"Don't worry, Shen Daban, if Hutchison Huang really plans to issue additional shares, I won't forget about HSBC."

Lin Baicheng promised, but he will not hand over all this business to HSBC, and will find other banks to do it together, but there is no need to tell Shen Congee these things now.

"Then I am here to thank Lin Sheng."

Shen Congee was overjoyed when he heard the words, and immediately said: "Lin Sheng, your assets now exceed tens of billions of Hong Kong dollars, but your personal debt is only 10 billion Hong Kong dollars. If you need funds, HSBC is very happy to give you a loan support. There is no need for Lin Sheng to use other assets as collateral, just the 9000 million shares you mortgaged in HSBC, as long as the total loan amount does not exceed 30 billion Hong Kong dollars, I can personally approve the funds."

"If necessary, I will borrow from HSBC again."

Lin Baicheng couldn't help but feel moved when he heard the words. Most of his funds are invested in gold futures. The home appliance company to be established really needs a large amount of capital investment. If necessary, he can borrow from HSBC and use the funds to develop the company.

Shen Congee said: "Lin Sheng, you can come to me anytime."

After the two chatted for a while, Shen Porridge said goodbye and left.

The intention of Shen Congee to come here this time is to repair the relationship between HSBC and Lin Baicheng. He thinks this goal should be achieved. Whether this is the case depends on whether Lin Baicheng will ask HSBC for a loan later, and whether Hutchison Whampoa will seek HSBC for additional shares. Just know.

If it is said that Lin Baicheng is just talking verbally and does not really want to repair the relationship with HSBC, then Shen Congee will also modify his strategy to strengthen his support for Lin Baicheng's competitors, and will try his best to fight against Lin Baicheng and Lin Baicheng if he has the opportunity After all, both parties are either friends or enemies.

Of course, Shen Congee still didn't want to lose Lin Baicheng, a big client, and such a powerful enemy.With Lin Baicheng's current strength, HSBC can't suppress it if it wants to suppress it, it needs to find an opportunity, and general suppression may not be of much use to Lin Baicheng, so multiple friends are better than multiple enemies.

As for Lin Baicheng, the status of HSBC in his heart is only an object that can be used. When Galaxy Bank develops and is able to provide him with financial service support, it is time for him to abandon HSBC.

Lin Baicheng is actually very clear that Xiangjiang is that big. Although the economy is developed in the future, if Galaxy Bank wants to develop, it will definitely form a strong competition with HSBC. The two sides will become competitors sooner or later, unless HSBC is willing to give up the leader Status, but this is obviously impossible, because there are too many interests contained in it.

At present, Lin Baicheng will not turn against HSBC, and use HSBC's strength to develop himself as much as possible. Although this will allow HSBC to make a lot of profits from him, it is a necessary sacrifice in the development process.Without the support of HSBC, Lin Baicheng's development speed would definitely be much slower. You can't stop taking loans from HSBC just because you don't want HSBC to make money from you. It would be a fool's act to do that.

Seeing that it would be time to get off work soon, Lin Baicheng didn't wait until the time to get off work before leaving the company, but left the company first and went home.He is not a wage earner, and there is no need to abide by the restriction that he can only leave the company when the off-duty time is up.

(End of this chapter)