Hong Kong 1980: The Savage Era

Chapter 237 [All are going public]

"We have already acquired 13% of the shares. Hong Leong Enterprise started secretly purchasing shares of Maswood the day before yesterday. We are not continuing to buy large shares at present, but only absorbing small shares. According to the current situation, it is not a problem to increase the holdings to 16%." Bai Jinyan reported.

"Work harder and try to acquire 7% of the shares, and hold 20% of the shares." Luo Qihong said with a serious expression, "I guess Hong Leong Group acquired Maswood Company in order to go public through a backdoor listing, and then all its industries in Hong Kong will be injected into it, but Daoheng Bank's assets can raise the stock price."

Bai Jinyan was not so optimistic. "What if Hong Leong Group uses the method of raising funds through new shares to acquire Dao Heng Bank? I'm afraid the share price will be difficult to go up."

"Don't worry. With the support of the Kuok Leng Chan family, Marswood will not keep a low profile. The share price will definitely soar. It's just a matter of time." Luo Qihong was still optimistic. "Daoheng Bank spent 6 million Hong Kong dollars from Hong Leong Group, while the market value of Marswood is only 7 million Hong Kong dollars. Once injected into Daoheng Bank, the new shares issued cannot exceed the original share capital, and the share price will not remain the same."

"What if we guessed wrong?" Bai Jinyan was still worried that De'an Company had little funds left.

"How could I guess wrong?" Luo Qihong laughed, "If there is no capital injection, why would Hong Leong Group acquire a shell company? Is it just for the sake of appearance?"

"Okay, let's leave it at that for this project. What's the situation of the Japanese stock market and Nikkatsu Film Company?" Luo Qihong waved his hand to interrupt Bai Jinyan's entanglement and changed the subject.

"Yesterday's Nikkei index was 8412.33 points. The growth of large companies generally remained stable, and only a few small companies increased exponentially. Our profit has exceeded 4.2 million Hong Kong dollars. I plan to withdraw some stocks that have not risen so well, spend energy analyzing the situation of small companies, and invest in a wide range of companies, so that we can make profits many times."

"Nikkatsu is in a bad situation. It is similar to Shaw Brothers in Hong Kong. It has been attacked by new film companies and is going downhill. However, its theaters are making good profits. As long as it corrects its development direction, it is possible to turn losses into profits."

Bai Jinyan hesitated for a moment and said, staring straight at Luo Qihong.

"The bottom line for Japan's full acquisition is 50%. We currently only hold 12.4% of the shares of Nikkatsu Films. Even if we add the 21% of Carrian, it is only 33.4%, which is still a big difference from 50%." Luo Qihong said.

"There are quite a few scattered shares, but we're afraid of alerting the enemy, so our funds are currently invested in other projects." Bai Jinyan's vision is a bit narrow. Profits from the stock market come very directly, and although the profits from real estate are huge, it takes a relatively long time to get them.

"Continue the acquisition. Once we get the 21% stake held by Jianing Company, we will start the acquisition immediately."

Bai Jinyan nodded, his eyes still a little evasive.

Early December
Aigo was listed on the four major exchanges. Prior to this, Liu Luanxiong and Liang Yingwei had hired newspapers to promote Aigo for nearly half a month. They also published information about Aigo's profits in the European and American markets in recent years, as well as information about the joining of tycoon Luo Qihong.

Such publicity naturally attracted investors to chase and subscribe. In the first hour of listing, the stock price rose by more than 5%, achieving the first step of success.

Liu Luanxiong also knew how to announce news in a tiered manner to increase the stock price to a greater extent. On the day of listing, he first announced the development plan of Aigo, then announced that Aigo's new products were a great success in the United States, and finally asked reporters to interview Luo Qihong and specifically ask about Aigo.

A few days later
Jingmou Electronic Manufacturing Co., Ltd. of the Chen Zengjing family spent 6 million yuan to buy a shell listed company from other people, and then successfully held 60% of the shares by injecting assets in exchange for new shares, completely controlling the shell company and changing its name to Jingmou Electronic Co., Ltd.

Chen Zengjing's methods in this regard were not so good, and the securities company he hired was also a parallel import company, which was run by some relative. The share price of Jingmou Electronics Company did not rise much, and its market value remained at around HK$1 million.

Meeting room of Jingmou Electronic Manufacturing Company
Luo Qihong browsed the report on the backdoor listing. The asset value was 2 to 3 times higher than the market value, and more than half of Jingmou Electronic Manufacturing Company's assets had not been injected into Jingmou Electronic Company.

The suggestion given by the securities company is to disperse the equity and then issue new shares in order to absorb all the assets. This method is very direct and crude. The repeated issuance of new shares will attract the attention of the Securities Regulatory Commission and even cause the Securities Regulatory Commission to be annoyed and reject the application for issuing new shares.

"Everyone, please give us your opinions." Chen Zengjing said with a heavy face.

Luo Qixing leaned his head close to Luo Qihong and whispered, "There seems to be something wrong with this plan, but I can't tell what's wrong."

Luo Qixing wanted Luo Qihong to explain to him the problems and Luo Qihong's own views.

"Brother, this is the drawback of family businesses, nepotism! You clearly knew that your relative's securities company was useless, but you didn't propose to cancel the cooperation and switch to a stronger one. The suggestions in the report were just a last resort, but they were regarded as the only way. It's really ridiculous." Luo Qihong smiled slightly, and his voice was only loud enough for Luo Qixing to hear.

"Will the IPO fail?" Luo Qixing asked with a frown. He certainly didn't want the IPO to fail. He also wanted to gain some experience from here to facilitate Shengyun Printing Company's future IPO.

Luo Qihong shook his head slightly and said, "Hasn't it already been listed? How can it be said that the listing failed? It's just that there are some problems with the full capital injection."

"Mr. Luo, do you have any other opinions?" Chen Zengjing asked Luo Qihong.

Luo Qixing had just finished expressing his views when it was Luo Qihong's turn.

Luo Qihong smiled and said, "I think we should proceed in a gradual manner. We are not in a hurry, so we can inject assets slowly and ensure immediate profits."

Chen Zengjing nodded thoughtfully. Luo Qihong's words carried too much weight. The reason was that Luo Qihong was wealthy and powerful, and had great abilities, so he would not speak without a purpose.

"Then we should distribute some shares first, then issue new shares, and we can deal with the rest slowly." Chen Zengjing made the decision and said, "Beimou, go buy some newspaper space, and start publishing advertisements for Jingmou Electronics Company from tomorrow."

"I suggest distributing the 60% of Jingmou Electronics' shares held to private hands in proportion, and then issuing new shares at 1 times the value to swallow up as many assets as possible." Luo Qihong couldn't help himself.

"Will the Securities Regulatory Commission have any objection?" Chen Qimou said after a moment of hesitation.

"No, the current stock market environment is not good. The Securities Regulatory Commission will not be so strict. They will turn a blind eye. They don't want the stock market to be so dull." Luo Qihong explained immediately.

"Let's give it a try first. If it doesn't work, we can hold a meeting to solve it." Chen Zengjing believed that Luo Qihong would not betray his own people, especially in this matter.

Then the topic of product upgrade and introduction of new products was raised at the meeting. Members of the Chen family spoke passionately, and there seemed to be a faint smell of gunpowder wafting around.

Luo Qihong had some understanding of these electronic products. First, Hexiang Trading Company had electronic products business, and second, many private investments in the United States were in technology stocks, so he also needed to understand the trends of electronic products.

But Luo Qihong said nothing, giving people the feeling that he "didn't understand". In fact, he didn't want to have conflicts with the Chen family. After all, Jingmou Electronic Manufacturing Company belonged to the Chen family, and only Luo Qihong and his brother did not have the surname Chen on the board of directors. It would be no fun to play against these people.

(End of this chapter)