Chapter 1404: Turning the Tide

The conference room became noisy again, but unlike before, this time Feng Yiping was on one side, and people other than him were on the other side.

Page and the others didn't understand, "Feng, this shouldn't be the case,"

Feng Yiping thought that they must have understood the "I" in the sentence just now as "we".

Of course, it shouldn't be like selling stocks yourself and then buying them back.

The underwriters didn't believe it. David glanced at Andrew who was stunned next to him, "Feng, you have to understand that this must be at least a few hundred million dollars."

What he said was conscientious. This time he planned to raise 4 billion U.S. dollars. He said it must be at least several hundred million U.S. dollars. That means at least he still wants to work hard to sell 80 to 90% of the share.

"I understand, I completely understand, you may not have heard clearly, I did not subscribe for it myself," Feng Yiping explained. He did not want Page and others to think that he wanted to take the opportunity to fight for control of Google.

If you didn’t subscribe, then what does it mean that it’s guaranteed?

"As you may know, in addition to the United States, I also employ nearly 30,000 employees. How to improve their work motivation has always been a headache for me,"

David and the others couldn't help but look at Page and Brin. Where are they?

"So I have been thinking about how to provide benefits to my employees to increase their enthusiasm. Now the opportunity has come. Letting them buy our Google stocks is definitely a good benefit, haha," Feng Yiping said with great joy.

Page and others' expressions brightened slightly, it turned out that this was what happened.

In order to make the company's IPO go smoothly, Feng worked so hard! ——They still don’t believe that Feng Yiping will really do what he said. He said this just to show that he is very confident in the performance of the stock after it is listed.

Michael Moretz and John Doerr smiled and nodded to Feng Yiping. In any case, Feng Yiping said such words in front of so many people, which is always beneficial to the listing, which is also beneficial to them.

The underwriters are even more excited!

Many people looked at Feng Yiping and felt very unbelievable.

They also keenly grasped the key point of what Feng Yiping said: He is very confident in Google's stock, otherwise he would not regard it as a benefit for employees.

The problem is, he actually regards Google stock, which is generally not optimistic about the market, as a welfare for employees. Where does he have such strong confidence?

Many people were looking at Feng Yiping intently. The excited and excited expression on his face was real!

If it is not true, then it can only be said that Mr. Feng should go to Hollywood rather than Silicon Valley for development.

"Feng, I have to remind you," Comrade David still wants to maintain a long-term friendly and cooperative relationship with Feng Yiping, "according to your company's requirements, within 15 days after the listing is successful, nearly 5 million shares will be available for sale. "After 90 days, 38.5 million shares can be sold; after 6 months of listing, another 170 million shares can be sold,"

Of course Feng Yiping knew what he said. This was a request made specifically to meet the needs of the company's employees, management, and other shareholders to cash out.

"Even if Google's stock price continues to strengthen as you expect after it goes public, can the stock price still be very strong under the influence of such a large number of consecutive selling orders?"

Many people were nodding.

This is one of the reasons why they are unwilling to underwrite.

Even after the listing, the stock price will rise, and it will be knocked down by such selling. Maybe the stock price will be lower than the issue price.

"Thank you for reminding David," Feng Yiping nodded to him, "but this is the result of my comprehensive consideration. I am still confident about the performance of our stocks in the future,"

By the way, if the price keeps rising, how many people will be so impatient to sell their stocks? Wouldn’t it be more valuable if I hold on to it?

"In order to dispel everyone's doubts, I would like to talk about my specific arrangements," Feng Yiping stood up. "We plan to issue nearly 30 million shares this time. If you sell 90% of them, there will be nearly 3 million shares left. Let me say a few words and ask each of my employees to subscribe for an average of 10 shares. It will not be a problem. This is at least 300,000 shares."

"My management team in China have made a good income in recent years. As long as I recommend them to subscribe for 2 million shares, there will be no problem. If possible, I will advise them to sell the stocks they hold in China and list them on Nasdaq. shares of the two companies in order to raise funds,"

Feng Yiping was completely nonchalant, "Because the stocks of my two companies naturally responded very well, but I think there will indeed be a considerable gap compared with Google, which is about to go public."

Page blushed with excitement again. What is a brother? This is a brother!

At critical moments, he would not hesitate to operate on his own son to support everyone's career.

"I think the remaining 700,000 shares may not be enough. I still got to know some wealthy people from mainland China. They have always wanted me to lead them to invest, but they didn't have the chance before. Now, haha," Feng Yiping couldn't bear it again. He laughed a few times and said, "This is the best opportunity. Ha, I believe they will thank me for this investment in the future."

He danced around the conference room like that, and finally stood behind Page and Brin and asked David and Andrew opposite, "Is this arrangement okay for me?"

Page also stood up and stood side by side with Feng Yiping. He was proud to have a partner like Feng Yiping!

Brin also stood up and patted Feng Yiping on the shoulder, saying nothing.

He and Page are now rich people on paper. The value of their shares in Google was valued at more than 1 billion each last year. Optimists also believe that their assets will at least exceed this person's alleged net worth of 25 billion. Billion dollar Donald ***.

However, valuation is valuation, cash is cash, and they have no cash now!

They want to cash out some of their cash through this IPO, so they can't be like Feng Yiping and simply buy shares worth hundreds of millions of dollars that cannot be sold.

The key point is that they are not as confident about Google's stock as Feng Yiping.

Facing the disdainful gazes of the three young people across from them, Andrew and David were a little embarrassed.

Andrew now looked at the young Chinese man in the middle, as if he could see his body shining, and he was a little afraid to look directly into Feng Yiping's eyes.

A transaction of hundreds of millions of dollars is really nothing to him, but to be able to finalize a transaction of hundreds of millions of dollars in just a few minutes and make decisions for tens of thousands of people is shocking. How much those people must trust this man!

The key is that the prospects for these hundreds of millions of dollars of transactions are not very good in the eyes of most people, or the mainstream point of view, but he is so sure.

Even how to implement it is explained so clearly, so naturally it is not nonsense.

Being reckless or bold enough to not care about the profit of such a large transaction is also a very impressive thing, and it will also impress people with his charisma.

"As long as there are no mandatory requirements for underwriting, then I think we have no other requirements," he said, looking at David.

David nodded and glanced at Feng Yiping quickly. He was afraid to look directly at Feng Yiping now, "Yes, we have no other requirements and we will do our best to do a good job in sales."

Page snorted into the air, put his hand on Feng Yiping's shoulder, and was about to go out with him to find out what happened. He really didn't want to waste time with these greedy, almost quarrelsome guys.

But Feng Yiping waved his hand, "Then, I have a problem,"

What Feng Yiping said with a smile made the underwriters who were still in great shock become nervous.

The huge confidence and decisive attitude that Feng Yiping showed just now made them doubt. Is Google really so good?

But they really weren't so sure.

Again, no matter how good a company's stock is, no one can guarantee that it will continue to rise and will not fall below the issue price after it is listed.

But is it possible that Google's stock will really outperform as the young Mr. Feng believes? So if you give up underwriting, don't you give up a lot of income?

so tangled!

This is the charm of the stock market and the reason why Buffett is Buffett.

However, Feng Yiping's statement at least really gave them a little more confidence in Google's IPO, and no one was willing to give up the business. When they heard Feng Yiping's tone, they knew his problem, and they would definitely be interested in it. The situation is not good for him, and his heart suddenly rises again.

"Since the underwriting clause has been cancelled, the green shoe option should also be cancelled," Feng Yiping said.

Michael Moritz glanced at his old friend and rival John Doerr, and they both understood what the other's eyes meant, "Wonderful!"

Feng Yiping's blow could be said to have hit those guys within seven inches.

"This is impossible." This time, it was the turn of Andrew and David, who had always had the initiative, to stand up.

The so-called green shoe option is named after the first use of this mechanism in the IPO of Boston Green Shoe Company in the United States in 1963. It is also known as the over-allotment option and has now become a common practice for American companies to go public.

The specific operation is usually that within 30 days after the stock is issued, the lead underwriter can purchase additional shares from the issuer equivalent to 5% to 15% of the original issuance amount at the issue price - usually the latter, which is 15%. % stock options.

This excess 15% of stocks is generally obtained by the lead underwriter "borrowing" shares from major shareholders.

This part of the stock will also be sold to investors during the issuance of new shares, and the proceeds will be kept by the lead underwriter.

After the stock is listed, if supply exceeds demand and the stock price rises, the lead underwriter can exercise the green shoe option to purchase the 15% excess shares from the issuer at the issue price and return them to the major shareholders.

This means that after knowing that the stock price has risen, they can still purchase popular stocks at the original lower issue price. This is also a benefit for employees of the company where the lead underwriter works.

On the contrary, if the stock price falls below the issue price, the lead underwriter can naturally choose not to exercise the option and use the over-raised funds in its own custody to purchase shares in the secondary market at a price currently lower than the issue price, and then return them to the major shareholders. , you can also benefit from it.

The so-called green shoe option is a benefit for the lead underwriter to guarantee income during droughts and floods. This is what Feng Yiping wants to do now, so it is no wonder that Andrew and David are not calm.

"Rights and obligations are equal, so naturally this is what it should be,"

"This, this..." Andrew from Morgan Stanley said for a long time, but couldn't come up with a reason. With so many people present, it's hard to say something like "I only want my rights but not my obligations, so that everyone can laugh." .

Feng Yiping smiled and said, "Our legal department will discuss the specific terms with you later. Sorry, everyone,"

He was sandwiched between Page and Brin and walked out with his head held high. Schmidt looked at the three of them and Feng Yiping with a complicated expression.

What Feng Yiping said and did naturally helped Google solve a big problem, but why was he the one who solved the problem?

The more dazzling Feng Yiping's performance was, the less he felt that he existed.

"Schmidt," Feng Yiping whispered to him as he passed by.

When the three of them walked out, Schmidt finally became the central figure in the conference room again, "Everyone, I am announcing a decision on behalf of Google,"

Merrill Lynch's Miles felt something was not good. After seeing Feng Yiping's actions just now, he decided to report it to the company, even if he jumped to President O'Neill, it didn't matter, so he quickly raised his hand to signal, "Schmidt special,"

Schmidt didn't look at his side at all. "Based on some ideological conflicts, we decided to exclude Merrill Lynch from our underwriter team,"

"Boom," his statement caused another commotion. Merrill Lynch is a powerful investment bank, and Google really doesn't give you any face at all!

It seems that there are some things that they really know how to do and really dare to do them.

This is also Feng Yiping's intention in asking Schmidt to announce it at this meeting. No matter how much he said, nothing he did did was more impressive.

This is also a wake-up call to underwriters who may still have ideas.