Chapter 1684: No Way to Buy

"What did you say? This time Facebook and Twitter will not cooperate with us when they go public? Then how much do they plan to sell their shares, and how much are they going to sell in total?"

The CEO of Goldman Sachs, Osfer, looked surprised. Before the listing of the subsidiaries of Fengyu Holding Group and Polar Bear Holding Group, they have always been sponsors.

Everyone cooperates very well. Every time Feng Yu and Kirilenko’s companies are successfully listed, the funds raised are never small. These two super rich people are also very satisfied. What’s wrong this time?

"The two companies each plan to raise about two billion U.S. dollars. The specific amount of one share has not yet been determined, and they have not asked us for a price."

"Who are their underwriters?" Osfer was very upset. This time they failed to become sponsors, but it would be good to buy some stocks of the two companies.

The sponsor is not allowed to hold the shares of the sponsor company, which is well understood. However, Goldman Sachs has been buying the shares of Feng Yu and Kirilenko's listed subsidiaries through other companies before, as long as it is a little bit of manipulation, it is not illegal.

These Goldman Sachs shareholders do not hold shares in those companies, but their relatives can. This is not illegal, and the profits obtained are not their family's?

"The same companies as before, Barclays Bank, Citibank, Morgan Stanley...became its lead underwriter, of which JPMorgan Chase is the sponsor."

These big financial companies have all become underwriters, but Goldman Sachs does not have them. Why?

The underwriter's commission is not low, especially the stock underwriting of such high-quality companies is generally relatively simple. Moreover, these big companies work together as underwriters, which can also enhance investors' confidence, and they will not underwrite those junk stocks.

"Do you know why there is a problem with our cooperation?"

"It seems that when we were the sponsors of Guge Company last time, your wife's company bought a lot of shares in Guge Company, which caused some troubles and delayed the listing of Guge Company by two weeks."

"But that time I sold Guge's stock to the highest price!" Osford said angrily, "And that's my ex-wife, we have no legal relationship!"

Although this is what they say, everyone knows what the actual situation is like.

But even if those problems arise, you shouldn't even ask Goldman Sachs for an inquiry, right? Hmph, it must be intentional by other underwriters, they just want to crowd out Goldman Sachs!

Osford had no idea,

It was Feng Yu and Kirilenko who requested that the companies making the inquiry this time should be those smaller financial companies. It is said that they were worried that the other party would overthrow their equity in these two companies.

This reason barely makes sense, but in this way, the price of this stock may not be very high.

In fact, other underwriters are also having headaches. If it weren't for the fact that everyone has cooperated more than once, and the commissions are also good, they would not accept such an underwriting request.

Both companies issued 100 million shares, accounting for 25% of the total share capital, but at the time of inquiry, the issue prices of the two companies were also different.

The result of Facebook's inquiry reached a maximum of 23 US dollars, which was much lower than their estimated 26 US dollars.

And Twitter's inquiry was only thirteen dollars, much lower than their estimate of seventeen dollars.

Can those small investment companies afford high prices? I really don't know what the two top rich men in the world think!

Issuing 100 million shares, the funds that can be raised are far lower than their expectations. Is this enough for the company's development?

Who doesn't know that Internet technology companies burn the most money at the beginning. Of course, if you make money, the speed of making money is also very fast.

The financial companies that were inquired were all overjoyed. They never imagined that they could also be inquired. But what they didn't expect was that these underwriters even hinted that they would subscribe more.

What do you mean, there are only so many circulations, and they don't have enough subscriptions? Could it be that the underwriters here have the right to sell? Or is there an over-allotment option?

In fact, there is no such thing as the placement rights are ultimately decided by the two companies themselves.

This time Goldman Sachs did not become the underwriter or sponsor, not because of a small accident in the last issue of Guge's stock, but also because they requested the right to sell.

Placing rights, that is, in the case of oversubscription, underwriters can decide how much to sell to whom.

For example, 100 million shares are issued, but the number of subscriptions reaches 200 million shares, so what should I do if the 100 million shares are not enough? This will determine who to sell these stocks to and who to choose as the company's shareholders.

Feng Yu discussed with Kirilenko to choose those small financial companies or banks that are going to be ruined. The advantages are also clearly explained to Kirilenko, and of course the disadvantages are also clearly explained.

Kirilenko has the same choice as Feng Yu, and these small companies are the only ones, let them suffer a lot.

I don't know how these companies look when they see the stocks they bought with great enthusiasm, and finally fall below the issue price.

Even Kirilenko also suggested that if there are a large number of oversubscriptions, then more can be issued to these small financial companies or banks to make them pay more.

And after the quiet period, we must continue to release some good news to make them happy first. When the stock price really falls, they will cry.

In the end, the issue price of Facebook was set at 24 US dollars per share, and that of Twitter was 14 US dollars per share. This is also the result of discussions between these underwriters and Fengyu Holdings and Polar Bear Holdings.

Originally they wanted to set higher, but Feng Yu did not agree. In fact, Feng Yu thinks that it can be sold if it is set higher, but the number of oversubscriptions may not be so much, and these small financial companies and banks will not be able to trap them.

Only by letting these small financial companies and banks go bankrupt can the financial crisis in the United States be made more serious, can it cause greater adverse effects on the US economy, and can more narrow the gap between the economies of China, Russia, and the United States.

On the day of the listing, it was very lively. Little Zach and Evan from Twitter rang the bell together, and both of them had red faces.

The result was not as expected by Feng Yu. Sure enough, the number of subscriptions exceeded the issuance by more than double. At this time, the two companies also chose their new shareholders according to the requirements of Feng Yu and Kirilenko.

Those investment institutions who bought stocks were overjoyed, while those who failed to buy or sell were at a loss. They subscribed so much, but they didn't even get a share?

Why do those small financial investment institutions and banks get so many stocks?

Fengyu Holding Group and Polar Bear Holding Group will definitely regret it, Feng Yu and Kirilenko will definitely regret it too, definitely will! (To be continued.)