Reborn Tokyo Golden Age

Each side takes a step back and reaches a compromise.

In the end, the valuation of Shirakawa Electric was set at around 580 billion yen.

This valuation is about 7 times of Bai Chuan Electric's annual profit. To be honest, Bai Chuanfeng is quite satisfied.

For the manufacturing industry, such a valuation multiple is already considered high.

This is also the reason why No. 1 Quanyin and Nomura Securities are optimistic about the future of Shirakawa Electric, so they gave such a high valuation.

If it is a more traditional manufacturing industry, such as clothing, wood and other industries without high added value, the valuation profit is at most 3 to 4 times.

Different industries and different product fields have different cross-reference objects.

For example, the valuation of Shirakawa Electric is partly based on Sony.

Because the business overlap of the two is the highest, and even the market shares of some products are relatively close.

If Shirakawa Electric continues to grow in the future, Sony may be its reality.

Therefore, Ichiro Watanabe and Takashi Yanagiya agree with Sony as the reference object for valuation.

As for why Nintendo is not used as a reference object, it is because it seems to have a lot of business, but it is actually concentrated in the toy entertainment industry.

From the perspective of product diversification and consumer audience, its potential is not as great as that of Baichuan Electric.

In addition, Nintendo still has a large amount of debt that has not been repaid, and its market value is generally underestimated.

If you use it as a valuation reference object, you will underestimate Shirakawa Electric.

As for many newly listed companies in the future, the valuation of 10 times or 20 times at every turn is another trick.

Especially for Internet companies, it is normal to increase by 50 times.

Even some social Internet companies will be valued according to the number of registered users, tens of dollars per user, so as to calculate their market value.

Different industries and different fields have different methods of valuing companies, and the process is complicated.

At present, Shirakawa Electric is valued at 580 billion yen, which is a value acceptable to both parties.

But now that the valuation has been negotiated, let's talk about financing.

"Bai Chuan-san, according to the previous agreement. At this time, Daiichi Bank will buy 10% of Bai Chuan Electric's shares at a price of 58.65 billion yen.

Presumably you have no objection to this point? "Watanabe Ichiro looked at Bai Chuanfeng with a special look.

And hearing the other party's particularly emphatic tone, Bai Chuanfeng raised his brows.

This is not financing. It is a plan to directly spend money to buy 10% of Baichuan Electric's shares.

Regarding Watanabe Ichiro's proposal, Bai Chuanfeng and Arai Yu looked at each other, and after getting confirmation.

Bai Chuanfeng also nodded in approval, "Yes, just follow Watanabe-san's suggestion."

What is the difference between financing shares and purchased shares? First, the money to persuade Yinhua is different.

If it is financing, the first bank needs to invest a sum of money into the total share capital of 580 billion, and then calculate the proportion of shares based on the sum of them.

At this time, if the first bank wants to take 10% of the shares, then the investment amount is 65.17 billion yen.

In layman's terms, the financing money is calculated into the denominator of the total share capital, and then the share ratio is calculated.

But buying shares directly with money is different, 5865*10%=58.65 billion yen, simple and rude.

The same is to take 10% of the shares, but the difference between the two methods of investment is about 7 billion.

Then it is clear that Chuan Electric took less money, why did Bai Chuanfeng agree without much consideration?

Because of the financing of 65.17 billion yen, although it entered the account of Shirakawa Electric.

But that already belonged to book funds, and at this time, the shareholders of Baichuan Electric had become Baichuan Holdings and First Quanyin.

Calculated in this way, the financing money belongs to the joint property of Baichuan Holdings and First Quanyin.

At that time, it would be unrealistic for Bai Chuanfeng to deal with it casually. If he accepts financing, he must abide by the rules.

But if First Quanyin directly spends money to buy 10% of the shares, then the money belongs to the private property of Baichuan Holdings.

This is legitimate income from the sale of shares, and Bai Chuanfeng can completely control it at will.

To put it bluntly, Bai Chuanfeng could not get the 65.17 billion yen in financing.

All of the 58.65 billion in the sale of shares can fall into his own pocket.

That's why Bai Chuanfeng chose to sell the 10% shares relatively cheaply.

The first persuaded Yin to spend less money to get 10% of the shares of Baichuan Electric, and Baichuanfeng also obtained a considerable income, so both parties were happy.

In the final analysis, Shirakawa Electric has good cash flow and does not need financing to maintain the company's operations.

If it is a start-up company, the first advice bank would rather pay more for financing than buy shares directly.

Because if it does not rely on the money from financing, how can startups maintain their operations and continue to develop new technologies to gain more markets.

For clubs with different operating conditions, there are various financing methods.

With 58.65 billion yen in the pocket, Bai Chuanfeng looked at the people of Nomura Securities again.

Liu Guxiao bowed his head and discussed with the members of his team for a while, and wisely chose to buy the shares directly.

Nomura's goal here is to take at least 8% of Baichuan Electric's shares, and Baichuanfeng agreed to their request.

However, because the first persuasion bank has already won 10% before, the current 8% shares will continue to be divided by Baichuan Holdings.

Calculated in this way, another 47 billion yen is recorded, and the 58.65 billion yen of the first persuasion bank is counted, and the sum of the two is 105.5 billion yen.

Damn, the company's listing is indeed a time of great fortune.

With this financing before listing alone, Bai Chuanfeng earned a higher income than Bai Chuan Electric's profit for the entire year of last year.

105.5 billion yen, 420 million US dollars, making money~

However, Bai Chuanfeng didn't feel bad about earning money from No. 1 Quanyin and Nomura Securities.

These two proper behemoths, one is the core bank of one of the six chaebols, and the other is the largest securities company in Japan.

For them, the small money of tens of billions of yen is drizzle.

First Advising Bank took 10%, Nomura Securities took 8%, and now Baichuan Holdings still has 82% of the shares of Baichuan Electric.

However, this is not the end of this financing. Represented by Yu Arai, Northern Capital Bank invested 29.3 billion yen to acquire a 5% stake in Shirakawa Electric.

Why does Beidu Bank participate in the financing of Baichuan Electric? Investing is one aspect.

The most important thing is that Bai Chuanfeng wants Beidu Bank to participate in the stock market and truly exercise the bank's financial power.

Of course, the details are for later. At present, it only needs to become a shareholder of Baichuan Electric.

And will Bai Chuanfeng accept the money from Beidu Bank? receive! Of course!

Beidu Bank is not owned by him alone, and Baichuan Holdings only owns about 67% of the shares.

The money is not left handed to right handed, so of course he accepts it.

And don't look at the net assets of Beidu Bank are only more than 90 billion, but its depositors have 400 to 500 billion yen in deposits.

So there is no need to worry about its capital chain at all, this is a normal investment expenditure.

After completing the acquisition of Beidu Bank, today's financing valuation meeting can be considered as a complete achievement of the goal.

In the end, Daiichi Quanyin won 10% of Shirakawa Electric for 58.65 billion yen, and Nomura Securities took 8% of the shares for 47 billion yen.

Northern Metropolis Bank finally split about 5% of the shares at a price of 29.3 billion yen, so Shirakawa Holdings still holds 77% of the shares of Shirakawa Electric at this time.

In the end, the sale of these shares brought about 135 billion yen in revenue for Bai Chuanfeng, which is 540 million US dollars.

Well, five small goals, unit knife music.

When Bai Chuanfeng signed the last signature on the contract, he felt very happy.

It’s no wonder that so many companies want to go public for financing even though they’ve made a lot of money. To be honest, the wealth expansion brought about by financing is much higher than the company’s annual profits.

Even after many companies went public and made a wave of money, the founders just cashed out and ran away just after the sales restriction period.

There is no way to make money quickly by playing finance in making products, whoever makes products is an idiot.

But now, Baichuan Holdings has always kept the controlling rights in its hands tightly covered.

Just kidding, Shirakawa Electric has just taken off, is the annual profit of nearly 100 billion yuan just a display?

"Okay, now that the contract has been signed, shouldn't it be time to discuss going public?"

As soon as he put down the pen in his hand, Ichiro Watanabe couldn't wait to start discussing the listing of Shirakawa Electric.

As for why so urgent? nonsense.

The first persuasion bank spent tens of billions of yen, isn't it for the listing of Baichuan Electric?

If it is just investment, then wait for the profit dividend of Baichuan Electric.

Then the first persuasion bank will never invest a huge sum of more than 58 billion yuan, even if it is profitable in the long run.

Because the rate of return is too low, the cost recovery is too slow.

What First Quanyin really cares about is the appreciation of Baichuan Electric after its listing and the income from underwriting stocks.

This is the most anticipated return for this investment, and it is also the window period for the fastest recovery of investment costs.

"Watanabe-san is right. Let's talk about the company's listing process, everyone. Nomura is an absolute authority in this field."

Needless to say, Nomura also had the same idea. After Takashi Yanagiya received the contract, he immediately began to distribute his own listing operation plan.

Obviously, it is more fully prepared than the first persuasion bank, and it even has a plan.

Looking at the plan in his hand, Bai Chuanfeng secretly sighed.

These benefactors who are not short of money are generous, but they are too impatient.

But think about it, isn't it the same for everyone who plays finance? High risk, high reward.

Putting down the plan in his hand, Bai Chuanfeng looked at Ichiro Watanabe and Takaya Yanagiya.

"About going public, do you have any suggestions?"

This is their professional field, and Bai Chuanfeng doesn't mind listening to their opinions.

"First of all, Bai Chuan-san intends to list Bai Chuan Electric on the First Section of the Tokyo Stock Exchange, or the Second Section of the Tokyo Stock Exchange?"

"Of course it will be listed on the Eastern Stock Exchange."

Facing Watanabe Ichiro's question, Bai Chuanfeng answered without hesitation.

The first part of the Eastern Stock Exchange is the main board market of Neon, which represents the financing subject of the capital market, accounting for 96.4% of the market value.

The second part of the Eastern Stock Exchange was only established in 1960. It is similar to the small and medium-sized board of China. Its service targets are medium-sized enterprises, and its market value accounts for only 1.14%.

Now the large neon companies, such as Panasonic, Sharp, Fujitsu, etc., are all listed on the first section of the Tokyo Stock Exchange.

As an ambitious entrepreneur, Bai Chuanfeng will of course go public on the Tokyo Stock Exchange, which is the stage for large companies.

However, as the main board market, there are also requirements for listing here.

So with the current size of Shirakawa Electric, is it enough to meet the listing requirements of the Eastern Stock Exchange?