Reborn Xiangjiang as a Tycoon

Chapter 551: Going public to raise funds, with worries (two-in-one)

"Thank you all for taking the time to participate in the fund-raising event of Galaxy Games Company today. I am Lin Baicheng. You can call me Allen. It is a pleasure to meet you."

"Galaxy Game Company, which I founded in 1977, started developing its first arcade game in July, which is "Xiangjiang Cube"!"

"Maybe some people know "Xiangjiang Cube", maybe some people don't pay attention to the game, so they don't know it. If you don't know it, then I want to tell you that its sales volume has now reached hundreds of thousands, and it has been sold all over the world.

Every country, whether North or South America, Europe or Asia, has its presence."

"In 1977, our company developed a total of two arcade games, namely "Hong Kong Cube" and "Pac-Man". Both games were very popular and were well received by the market. They brought great success to the company in 1977.

Net profit of $150 million."

"To put it into perspective, in 1977, it only took the company half a year to create a profit of US$150 million."

"And in 1978, "Hong Kong Cube" and "Pac-Man" continued to sell well. At the same time, the two games "Tank Battle" and "Donkey Kong" developed by the company that year also achieved good results. The company's net profit that year was

The profit was US$300 million, an increase of 100% compared to the same period in 1977.”

"It is very rare for a company to maintain high net profits, let alone grow significantly. I think everyone should be able to imagine it."

"This year, although the sales volume of the company's four best-selling games in the previous two years has decreased, the sales of an arcade game have had three golden years, so the two games "Hong Kong Cube" and "Pac-Man" are expected to return this year.

The sales volume of "Tank Wars" and "Donkey Kong" can be about half of last year's, and the sales volume of "Tank Battle" and "Donkey Kong" can be about 70% to 80% of last year, bringing a lot of profits to the company."

"This year, the company has also developed new games. A total of five games have been developed this year. Although three of them are not classics, they can still bring a lot of profits to the company. Among them, the "1942" arcade game, which was developed by myself, is even more popular.

It is a classic game that is very popular in the market and will bring high profits to the company in the next two to three years."

"The last game is not yet on the market. This game is also developed by me and will be sold before Christmas. I am confident that this game will become a classic and bring at least one success to the company.

Two hundred million dollars in revenue.”

"This year's company's third quarter report has come out. As of the end of September, the company's profit was about 310 million U.S. dollars, which has exceeded last year's profit of 300 million U.S. dollars. Around Christmas is the peak sales season for the company's arcade machines, and the company expects the fourth

With a quarterly profit of US$130 million, the company’s profit is expected to reach US$440 million this year, a year-on-year increase of nearly 50%.”

"In 1977, the company's profit of US$150 million only took half a year. If calculated based on a full year, the company's profit that year would have reached US$300 million. In 1978, the company's profit reached US$300 million; this year's

In 1979, company profits were expected to be no less than $400 million."

"In other words, over the past three years, the company's average annual profit has been no less than 300 million US dollars, and the company's listing inquiry price is only 15.75 US dollars per share, with a total market value of 3.15 billion US dollars, a price-earnings ratio of ten times."

"A company with stable and high profits every year must have a price-to-earnings ratio of more than ten times. Just look for it in the U.S. stock market. There are no stocks with such high profits but low price-to-earnings ratios."

"So, buying the stock of Galaxy Games now is equivalent to buying a good company at the bottom. Long-term holding will definitely bring huge returns to everyone."

"."

Lin Baicheng said a lot. Anyway, he just picked up the good news. For example, he would never tell investors such negative news that the gaming industry may be boycotted by parents.

As long as parents in the two largest markets, the United States and Japan, do not boycott the gaming industry and the gaming industry is not harmed and the company's profits are greatly reduced, then the future of Galaxy Games is worth looking forward to. But if it is boycotted and hit hard, then it will

Lin Baicheng has nothing to do with it. This is a 'black swan' event that no one could have predicted.

"Mr. Allen, when calculating this year's profits, has your company calculated the profits of the game that has not yet been released according to the market explosion? If so, will it have a negative impact on the company once the game has a mediocre response?

Will it have a significant impact on our quarterly and next year’s profits?”

Next is the time for investors to ask questions. Investors cannot just listen to Lin Baicheng, the chairman of the company, and list the data. Someone will definitely find fault. They must be responsible for their own funds. Even funds must be responsible for the money they invest.

Lin Baicheng solemnly replied: "Among the many games that the company has put on the market, the four popular classic games, "Xiangjiang Cube", "Pac-Man", "Tank Wars" and "1942", were all developed by me.

The game that is not yet on the market was also developed by me, so the company management and I have considerable confidence in the sales performance of this game, and we do not think it will fail."

"Mr. Allen, I read the report. The profit of Galaxy Games is about 60% of the revenue. Can the company's profit ratio remain so high? Once the product selling price decreases or R&D and other costs increase, will the company's profit increase?

Will it decrease?"

"If the situation mentioned by this gentleman occurs, the company's profits will definitely decrease, but this has not happened yet, and the current assumptions are simply meaningless. If we make assumptions, the company will develop at least five games next year.

If the company develops all classic games next year and are well received by the market, then the company's profits next year will be at least over US$500 million, and the company's stock price will definitely soar by then."

"Galaxy Games currently has a very high market share in arcade games. Is the company ready to face the challenges of latecomers? Since this industry is so profitable, I think there will definitely be many companies entering this industry and the number of competitors will increase.

It will definitely affect the company's profits, don't you think, Mr. Allen?"

"The company has no challengers now, and there will be no challengers in the future. The company will only do its best, constantly surpass the past, create better results than last year, and bring higher profits to the company than last year."

"Mr. Allen."

"..."

Lin Baicheng answered every investor's question seriously. Even if some investors asked critical questions, he could answer them with ease.

This fundraising event took more than an hour in total.

After the event, Galaxy Games held a party at this hotel and invited these investors to attend.

Except for some people who have already decided to subscribe for shares of Galaxy Games, most investors still have to think about it again, and Galaxy Games will give everyone time.

Although this is the last fund-raising event in New York, the company is still ten days away from going public, and investors have up to a week to consider and raise funds, which is plenty of time.

At the party, Lin Baicheng found Wade Thomas and Derren Lawrence sent by Goldman Sachs and Citigroup to assist Galaxy Gaming Company in its listing.

"Should all the company's shares have been subscribed?"

The reason why Lin Baicheng asked this was because after the last fund-raising event in Chicago, more than 34.7 million shares of the 40 million shares issued by Galaxy Games had been subscribed, leaving only a little more than 13% of the shares.

was subscribed.

And this is New York, the most economically developed city in the United States. The number of wealthy people here is definitely one of the cities with the largest number, and the funds for subscribing to stocks will definitely be more. I think it should be more than the two cities of Los Angeles and Chicago.

The subscription proportions in these two cities exceeded 15%.

"That's almost it."

Wade Thomas said: "Although there are still nearly one million shares that have not been subscribed, the number of people who have subscribed so far only accounts for a small part of the total number of people who came to participate in the event. There are still more investors who have not made a decision. Wait until tomorrow for all

All shares will be subscribed."

Derren Lawrence said: "If nothing else happens, Galaxy Games' shares will definitely be over-subscribed."

Lin Baicheng asked aloud: "So if the stock is oversubscribed, what do you think is a better way to deal with it?"

Wade Thomas said: "If there is not much oversubscription, then it will remain unchanged and the company will be listed as originally planned. It can only be said that those investors who subscribed too late are out of luck."

Derren Lawrence took over: "Once the amount of over-subscribed funds is sufficient and can reach about 5% of the total funds raised in the issuance, the issue price can be increased and the company's listing time will be delayed. After all, the higher the issue price, the better.

The better for the company."

"If that's the case, let's wait until the fundraising results come out before we talk."

Lin Baicheng nodded slightly. If the oversubscribed funds are not large, then there is no need to waste time.

Wade Thomas reminded: "Alan, it's best for you to stay here in the United States during the recent period. Once there is a situation, you can handle it immediately. Especially when the company goes public, as the chairman of the company, you must go to the scene to knock on the matter."

Zhong, once you don’t go, there will definitely be bad speculation from the outside world, which will definitely have a great impact on the company’s stock price.”

"Don't worry Thomas, unless something extremely important happens, I will stay in the United States during this period."

Lin Baicheng smiled and nodded. He came to the United States this time specifically for the listing of Galaxy Games, so unless there was a major incident that he had to deal with personally, he would not be able to leave halfway.

"When you say that, I feel relieved."

After hearing what Lin Baicheng said, Wade Thomas certainly wouldn't say anything else.

Derren Lawrence said: "Alan, let's go talk to the investors."

Lin Baicheng nodded when he heard this, waved to the waiter not far away, took a glass of wine, and went with Wade Thomas and Derren Lawrence to greet and chat with the investors.

It does not mean that all of these investors who may subscribe for stocks are very rich, but each of them has at least a few million dollars, and some have tens of millions or hundreds of millions of dollars. Some are even responsible for small and medium-sized institutions.

When the number of people increases, the total subscription funds will be very considerable.

Lin Baicheng's mentality is very stable. Anyway, the shares currently issued have almost been subscribed. It would be best to have a large amount of funds to oversubscribe, but if not, it doesn't matter to him. He does not pursue perfection.

That night, Lin Baicheng went to Maori Haruko's residence and spent the night at Maori Haruko's place tonight.

"Chengjun, how is the stock subscription going?"

Of course, Maori Haruko knew what Lin Baicheng wanted to do when he came to New York. She just didn't go to the hotel where the fund-raising event was held.

"Basically accomplished the goal."

Lin Baicheng simply said: "Now we have to see whether it will be oversubscribed. If it is oversubscribed, how much more funds can be exceeded."

Haruko Mouri asked: "If it is oversubscribed, will the issue price of the stock be increased?"

Lin Baicheng nodded: "If the oversubscribed funds are 30 to 40 million US dollars, the issue price should be increased."

Haruko Mouri said: "The higher the issue price, the higher the market value of the company, and the higher the value of your shares, Cheng-kun."

"That's right."

Lin Baicheng shook his head: "But, I have no intention of selling my shares in the short term, so the short-term fluctuations in stock prices have nothing to do with me. I might as well work hard to run the company during that time."

Maori Haruko reminded: "Chengjun, now you personally still hold 59% of the shares of Galaxy Games Company. After the half-year sales period has passed, it is best to sell some shares, at least on the surface. If Galaxy Games Company

If it's very profitable, holding too many shares will only make people jealous, which can easily lead to trouble."

"I understand what you mean, I have similar plans."

Lin Baicheng nodded to express his understanding, and said: "Not only Galaxy Games, but also Hutchison Whampoa, which is now the largest market value in Hong Kong, I will also reduce my holdings in my hands, and I will only keep a maximum of 20

% of the shares. If one day the company's market value can exceed 100 billion Hong Kong dollars, I will even reduce my holdings, leaving only 10% on the surface."

"Makoto-kun, that's good if you have such a plan."

Maori Haruko is really worried that Lin Baicheng doesn't understand the truth behind this. As the largest number of ordinary people, even if people don't hate the rich, they won't have a good impression of the rich. Therefore, having too much wealth on the surface will attract hatred.

Yes, it will attract greedy eyes and cause trouble for yourself.

"Haruko, if you have any suggestions, just tell me. Don't worry about anything. There might be something I didn't expect. You have to check for my mistakes and fill in the gaps."

Lin Baicheng said very seriously. He knew very well that although he was a reborn person, he was just an ordinary person before. There might be important things that he had not considered. Therefore, he needed to listen to other people's good advice and not be blindly arrogant.

"Don't worry, Cheng-kun, I will always remember you."

Maori Haruko nodded to express her understanding. She could now say that she and Lin Baicheng were both prosperous. Of course, she hoped that Lin Baicheng would get better and better.

(End of chapter)