Reborn Xiangjiang as a Tycoon

Chapter 397 Matters regarding additional stock issuance (two-in-one)

The call was from Shen Chou, the senior manager of HSBC. On the phone, Shen Chou said that he wanted to visit Lin Baicheng and talk to Lin Baicheng in person.

Lin Baicheng had some guesses about Shen Chow's intention to visit, so he agreed immediately. After Shen Chow said he would come to Hutchison Whampoa soon, he said he would wait for him at the company.

"This must be urgent."

After hanging up the phone, Lin Baicheng sneered.

Lin Baicheng could guess what Shen Chou was thinking. After all, in one year of Hutchison Whampoa's financing with HSBC, the interest alone exceeded US$130 million, which would be about 550 million in Hong Kong dollars. This was a large amount of money.

Now, Hutchison Whampoa's investment has been transferred to a third party, which means that it will continue to invest, but will no longer raise funds from HSBC, which means that HSBC will not earn this profit of more than 100 million U.S. dollars. This makes Shen Zhou not Don't worry about heartache.

More than half an hour later, Shen Zhou arrived at Hutchison Whampoa, and Lin Baicheng entertained Shen Zhou in the office.

"Daban Shen, 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 Porridge said bluntly: "Lin Sheng, I won't talk in circles. I came to visit today to have a chat with you, Lin Sheng. I hope that HSBC, Hutchison Whampoa and you can continue to cooperate in the future. .”

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

"As long as Lin Sheng is willing to continue to cooperate."

Shen Zong smiled and said: "Hutchison Whampoa announced that it will hand over the principal of US$200 million to a third-party company for operations. If there is a need for financing, HSBC is very happy to provide funds and provide preferential financing interest. .”

Lin Baicheng secretly thought that it was true, but he said: "I will inform Wade Investment Company about this. If necessary, I think they will contact HSBC."

Looking at Lin Baicheng, Shen Porridge couldn't help but persuade: "Lin Sheng, your own investment level is so high, why do you need to hand over the funds to a third-party company for operation? This can also save 10% of the profit management fee. You hold it yourself Half of Hutchison Whampoa’s shares is equivalent to saving 5% of profit management fees for itself.”

"Furthermore, the financing interest I offer is definitely lower than that of 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."

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

Lin Baicheng shook his head and declined, which would have caused Shen Porridge to get entangled. He still hinted: "Shen Daban, Hutchison Whampoa handed over the funds to Wade Investment Company for operation, so that even if someone has any ideas and wants to short Hutchison Whampoa or something, they can't find out. Details of Hutchison’s investment.”

Shen Porridge's face changed slightly: "Lin Sheng, I will ask the bank to keep Hutchison Whampoa's investment account under strict custody. No one except a few senior executives will know about it."

"Taban Shen, Hutchison Whampoa have been shorted twice."

After hearing what Shen Porridge said, Lin Baicheng simply stated: "I don't want something like this to happen to Hutchison Whampoa again, so I want to keep Hutchison Whampoa's investment account confidential. Only by handing it over to a third-party company can I guarantee Hutchison Whampoa's investment." The details will not be discovered by anyone who cares."

"Lin Sheng is too worried."

Shen Chu smiled coquettishly, Lin Baicheng had said so, what else could he say, after all, he had a criminal record.

Lin Baicheng didn't want to embarrass Shen Zhou, so he changed the subject and said: "Shen Daban, you don't have to worry about Hutchison Whampoa and my cooperation with HSBC. If you should worry, it should be because I am worried that HSBC will not cooperate with me." , your HSBC is everyone’s God of Wealth.”

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

What Shen Zhou said was sincere and sincere. For ordinary businessmen, the bank is the god of wealth, but if it were someone like Lin Baicheng, they would be the bank's big customers. What the bank has to do is to retain the big customers.

Lin Baicheng did not object to Shen Chow's words, saying: "Hutchison Whampoa will increase its investment in real estate this year, and the development of the real estate industry will definitely require bank loans. At that time, I hope HSBC can give Hutchison Whampoa more loan lines. At the same time, Give preferential treatment in terms of interest.”

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

Shen Chou immediately agreed and promised to give lower interest rates. The reason why he said this was mainly to repair the relationship between HSBC and Lin Baicheng through interest rate cuts, so that Lin Baicheng and Lin Baicheng's companies could meet their financing or loan needs for the first time. I immediately thought of HSBC.

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

Lin Baicheng was also very happy after hearing this. Hutchison Whampoa cannot develop vigorously without the support of banks. Now that HSBC is willing to offer lower interest rates, it is of course a good thing.

Shen Zhou said politely: "Sheng Lin is so 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 Whampoa to issue additional shares at a certain time, what should I do?"

Issuing additional shares actually increases the company's total share capital and dilutes the shares of all shareholders. However, the additional shares can allow the company to increase corresponding funds and the total market value will increase accordingly. The interests of the original shareholders will not be harmed.

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

Shen Chow couldn't help but cheered up when he heard this: "Hong Kong 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 a few years ago. Therefore, if a company wants to issue additional shares, it mainly depends on Whether this company can gain market recognition and whether investors are willing to pay for it."

"If a company is not operating well and has poor performance, then the company's stock price will definitely be very low and the trend is not good, and shareholders will not want to buy it. In this case, if the company chooses to issue additional shares, shareholders will definitely not want to buy it. If you can pay the price, the result will only be a sharp drop in stock prices, so companies with poor performance usually do not issue additional shares."

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

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

"Hutchison Whampoa's current performance is good, the stock price is trending very well, and investors are very satisfied with Hutchison Whampoa's stock, so there is no problem for Hutchison Whampoa to issue additional shares. The only restriction is that the additional shares cannot exceed 30% of the total share capital. Hutchison Whampoa Taking the current total share capital of 400 million shares as an example, the number of additional shares issued cannot exceed 120 million shares."

"If Lin Sheng hands this matter over to HSBC, HSBC will only charge a 4% handling fee. You know, the usual charging standard for this kind of business is 5% of the market value of additional stocks. You can check this, Lin Sheng. .”

"Moreover, we at HSBC are not without our efforts. When stocks are issued, HSBC will invest in buying some of the additional shares, and use HSBC's contacts to promote the additional shares and buy as many shares as possible."

"The fewer shares flow into the stock market, the less funds will be absorbed by investors, and the impact on Hutchison Whampoa's stock price will be smaller. It will not happen that Hutchison Whampoa's stock price plummets just after Hutchison Whampoa has issued additional shares."

Related financial services are the bank's main business, so Shen Chow strongly recommends HSBC. Based on Hutchison Whampoa's current market value, the market value of the additional shares will be at least HK$1 billion, and the handling fee that HSBC can earn is HK$40 million, while HSBC The expenditure is nothing more than some manpower, not to mention that he believes that the market value of the additional shares is likely to be more than 1 billion Hong Kong dollars. After all, Hutchison Whampoa can definitely choose a loan for just 1 billion Hong Kong dollars.

"This is just an idea. I haven't decided yet whether to issue additional shares, so I can't agree to it now, Mr. Shen."

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

"If you want Hutchison Whampoa to issue additional shares, Mr. Lin, please hand over this business to HSBC."

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

"Lin Sheng, if Hutchison Whampoa wants to issue additional shares, the market value of the additional shares will not be less than HK$1 billion, right?"

"If possible, my initial idea is to issue an additional 100 million shares, which is 25% of the total share capital. If the amount is too high, it is not unacceptable to reduce the additional issuance ratio."

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

"so much?!"

Shen Zhou couldn't help being shocked when he heard this.

Not to mention Hutchison Whampoa's current stock price, even if it is only calculated based on Hutchison Whampoa's stock price of HK$50 per share, the additional issuance of 100 million shares would be a market value of HK$5 billion. HSBC can find a way to absorb up to 20% of this amount. The remaining stocks worth HK$4 billion flowing into the stock market will inevitably put pressure on Hutchison Whampoa's stock price. 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 Whampoa's current market value is more than 20 billion Hong Kong dollars, one-tenth of which is more than 6 billion Hong Kong dollars. With so many additional shares issued, I'm afraid that investors will not have enough money to buy them by then, and the additional shares will not be sold. .”

"This is just my preliminary idea. I will wait until I decide to let Hutchison Whampoa issue additional shares."

Lin Baicheng shook his head and was not prepared to talk more. He said: "Daban Shen, what I want to know is, if Hutchison Whampoa wants to issue additional shares, can the additional issuance be done immediately?"

"Although this is true, it is best to make preliminary preparations one month in advance, so that HSBC can have time to market and digest some stocks, and at the same time, investors who are interested in buying will prepare funds in advance." Shen Zhou said.

"That's true."

Lin Baicheng couldn't help but nodded, and then expressed his gratitude to Shen Zhou.

Shen Chou repeatedly stated that this was what he should do, and asked Lin Baicheng to remember to find him and hand over the business to HSBC if he wanted to let Hutchison Whampoa issue additional shares, saying that HSBC would definitely handle the matter well.

"Don't worry, Mr. Shen, if Hutchison Whampoa really plans to issue additional shares, I will not forget HSBC."

Lin Baicheng promised that he would not hand over all this business to HSBC, but would also find other banks to do it together, but there was no need to tell Shen Chou now.

"Then I'd like to thank Lin Sheng for being here."

Shen Chow was overjoyed when he heard this, and then said: "Lin Sheng, your current assets exceed 10 billion Hong Kong dollars, but your personal liabilities are only 1 billion Hong Kong dollars. If you have funding needs, HSBC will be very happy to provide you with loan support. There is no need for you to pledge other assets, Lin Sheng. Just the 90 million shares you pledge in HSBC, as long as the total loan amount does not exceed 3 billion Hong Kong dollars, I can make the final decision and approve the funds."

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

Lin Baicheng couldn't help but feel moved when he heard this. Most of his funds are now invested in gold futures. The home appliance company that is about to be established does need a large amount of capital investment. If necessary, he can borrow money from HSBC and then use the funds to develop the company.

Shen Zhou said: "Lin Sheng, you can come to me at any time."

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

Shen Zong's original intention of coming here this time was to repair the relationship between HSBC and Lin Baicheng. He felt that this purpose should be achieved. Whether this is the case will depend on whether Lin Baicheng will seek a loan from HSBC later, and whether Hutchison Whampoa will approach HSBC if it plans to issue additional shares. Just know it.

If Lin Baicheng is just talking about it and does not really want to repair the relationship with HSBC, then Shen Chou will also modify his strategy, strengthen his support for Lin Baicheng's competitors, and attack Lin Baicheng and Lin Baicheng as much as possible if he has the opportunity. After all, both parties are either friends or enemies.

Of course, Shen Cong still doesn't want to lose Lin Baicheng, a big customer, and have such a powerful enemy. With Lin Baicheng's current strength, it is not something that HSBC can suppress if it wants. It has to find opportunities, and general suppression is against Lin Baicheng may not be of much use yet, so multiple friends are better than multiple enemies.

As for Lin Baicheng, HSBC's position in his heart is just that of someone he can use. When Galaxy Bank develops and grows and is able to provide him with financial service support, it will be time for him to abandon HSBC.

Lin Baicheng actually knows very well that Xiangjiang is only that big. Although the economy will develop in the future, if Galaxy Bank wants to develop, it will definitely form strong competition with HSBC. Sooner or later, both parties will become competitors, unless HSBC is willing to give up the leadership position. status, but this is obviously impossible because it contains too many benefits.

At present, Lin Baicheng will not fall out with HSBC and will use HSBC's power to develop himself as much as possible. Although this will allow HSBC to make a lot of profits from him, this is a necessary sacrifice in the development process. Without the support of HSBC, Lin Baicheng's development will be very difficult. The speed will definitely be much slower. You can't refuse to borrow from HSBC just because you don't want HSBC to make money from you. It would be a fool's errand to do so.

Seeing that it would be time to get off work soon, Lin Baicheng did not wait for the off time to arrive before leaving the company, but left the company first to go home. He was not a wage earner, so there was no need to follow the restriction that he could only leave the company after off work time.

(End of chapter)