Chapter 647: Sniping Xinli Education Through Hong Kongs Stock Market
Chapter 647: Sniping Xinli Education Through Hong Kong's Stock Market
Su Yang didn't have any other merits except for his love of... Money.
This might have something to do with his experience of being poor.
Therefore, when he heard Zhao Licheng say that the deal involved billions of yuan, he started to pay more attention to it. He no longer felt that there was anything wrong with Zhao Licheng being so cautious. Plus, he had also readjusted his relaxed mood due to his vacation.
Then, Su Yang flipped through the plan that Zhao Licheng had given him. He realized that Zhao Licheng was very organized and detailed about the sniping of Xinli Education.
'The first step is to Obtain as much usable funds as possible and draw out the opponent's funds at the same time.
'For example, he would sell his stock to Old Cao at a high price and ask Old Cao to buy it for himself, in cash.
'This would prevent Old Cao from transferring the funds to buy back the shares while he was emptying out Xinli Education.
'The second step is to promote the IPO of Xinli Education through Hong Kong shares, allowing the company to enter the free market in Hong Kong. This would cause the company to not be affected by the government's policies or the fluctuations in the share price, allowing him to prepare to empty out Xinli Education.
'His third step is to find a bank or broker in Hong Kong to transfer the funds into it. He would patiently buy the shares of Xinli Education at a low price and wait for an opportunity. When the market value of Xinli Education reaches its peak and Old Cao pushes his plan forward, he would use the broker's resources to find an institution that held a large number of Xinli Education's shares and begin to empty them out.'
...
Su Yang looked through each step of the plan and realized that the plan was extremely detailed with exactly ten steps involved. 'His plans are absolutely flawless from start to finish.'
After Su Yang finished reading the plan, he raised his head and looked at Zhao Licheng. "Which step are we at right now?"
Zhao Licheng pointed at the second step and said, "Xinli Education system has successfully passed the review by the Hong Kong Stock Exchange. They've confirmed that they'll launch the IPO in Hong Kong tomorrow."
Zhao Licheng explained, "They plan to issue 70 million yuan worth of shares, with each share valued at HKD 57. The funds raised will not exceed HKD 570 million, which is equivalent to 4.028 million yuan. The shares in circulation account for 21.2% of the company's total share capital."
"According to this calculation, before Xinli Education goes into the market, its market value would have already reached 19 billion yuan. Then, after it goes public, it might even continue to rise."
Su Yang pondered about it. 'This valuation is much higher than before, which was only about 10 billion yuan. But now, it's worth 19 billion yuan. If I were to double this, it would end up being 38 billion yuan, which is close to four times the previous valuation.'
At that thought, Su Yang asked, "How much did your wife sell her shares for?"
After Zhao Licheng died, his wife inherited 12% of his shares.
Zhao Licheng extended two fingers. "1.8 billion yuan, in cash."
Su Yang sucked in a breath of cold air. 'This five-star talent's net worth really isn't low indeed. Just the amount of cash he has is already more than what I have!
'In that case, he has actually sold it to Old Cao at a premium, but it was still not as expensive as what's stated on the IPO.'
As expected, Zhao Licheng said, "I've been talking to Old Cao for a long time and raised the price from 1.2 billion yuan to 1.8 billion yuan. The premium is 50%, but the condition was that it had to be paid in cash."
"We've known each other for ten years, so I know very well how much money he has. He must have mortgaged his own shares to borrow so much money. With his connections, he should not be able to find an agency or venture capital company that is willing to pay 1.8 billion yuan to buy IPO shares.
Su Yang looked at the proposal and pointed to the third step. "So, our next step is to transfer the funds to Hong Kong?"
Zhao Licheng nodded seriously and said, "Actually, not only do we need to transfer the funds to Hong Kong, we also need to find someone who can operate such a large amount of funds."
Su Yang looked at Zhao Licheng. "Can't you do it?"
Zhao Licheng shook his head. "I can't do that. I'm a business manager, not a stock exchange dealer, or even a stock trader for that fact. So, I don't have any experience in Hong Kong's stock market."
"So I suggest we spend a lot of money to hire a suitable trader, or... Hire a partner through the [Burning Reincarnation Circus].
"I'm more inclined to the second option. Plus, I suggest... We head to Hong Kong to summon this person."
Su Yang was speechless.
'This isn't something that I can get done just because I want to, my friend.
'The [Burning Reincarnation Circus] isn't something that I can control.'
Su Yang knew that Zhao Licheng meant what he said. Hence, he said, "Alright. I'll fly to Hong Kong to see if I can recruit a suitable talent."
Zhao Licheng nodded and continued, "Also, Mr. Su, my wife and I have discussed this. We will leave 200 million yuan for our future expenses and private assets. The remaining 1.6 billion yuan will be yours."
When Su Yang heard that, he quickly waved his hands. "That won't do, this is two different matters. Your money belongs to you, so how can I possibly ask for your money when you're working for me?"
Zhao Licheng must have guessed that Su Yang would say that. Hence, he said, "How about this? We'll invest the 1.6 billion yuan into Jiadian Healthcare, I don't want that much percentage of shares, just 1% will do. Is this acceptable for you?"
"This kind of deal does not require having to declare to the public, so no one will know about our deal, plus it will not affect your plans.
Su Yang looked at Zhao Licheng in shock.
'This five-star talent of mine is really extraordinary...'
Su Yang immediately understood that Zhao Licheng's plan was to kill four birds with one stone.
'Firstly, he knows that my methods are not something that any ordinary person would be able to counter against, so he's afraid that I'd become jealous and envious if he's got more wealth than me. So, he's giving me most of his so that there isn't the possibility of that happening.
'Secondly, he has too much money in his hands, plus just the amount of money he has on him is enough to empty out Xinli Education, there's no need for him to use my money at all. However, by giving me all of his money, I'd become the owner of this amount of money, involving me in this Xinli Education project in the meantime.
'Thirdly, by giving me most of his money and even owning a portion of my company's shares, it would be akin to him declaring his loyalty to me. He's going to be bound to me throughout every step of the way without any hesitation.
'Finally, which is also the most important point. His sharp senses have allowed him to realize that out of all my subsidiaries, the most important and most valuable one isn't the technology company but the health supplements company. Or more accurately, the biological company.
'This is because he has witnessed my ability to revive people and he has also witnessed the miraculous effects of Sanque's ginseng roots.
'Furthermore, health and longevity are always things that humans pursue throughout their lives.
'Although technology might become outdated and get phased out, but things that could cure and increase the lifespan of humans will never become outdated.
'Hence, Jiadian Healthcare is actually the company that's the most valuable in my roster.
'1.6 billion yuan for 1% of my share, which is equivalent to having a net worth of 160 billion yuan. This value is probably extremely low for a company that could increase a person's lifespan and treat any disease.
'Even if Jiadian Healthcare doesn't get listed in the future, it would not be financed, nor would it ever be valued.
'However, as a shareholder, he would be able to enjoy many of the benefits involved in the company.
'Which tycoon would actually think that a billion yuan is expensive in return of being able to live for a few years longer?
'That's why I think Zhao Licheng's thought process is out of the ordinary.
'However... On the contrary, I'm not envious or worried about this.
'From the way I see this, I've got all the core technology in his hands. In fact, I've got Zhao Licheng with me. So, the smarter he is, the more help he would be to me.
'As for the 1% shares... I'll just give it to him since Jiadian Healthcare won't get listed anyway, so it'd just be a symbolic gesture. Zhao Licheng probably knew this, hence he has the courage to make this request.'
Therefore, very soon, the two decided on the ownership of the 1.6 billion.
However, this was just a verbal agreement. Everything still needed to be transferred through a proper channel to Hong Kong before it can be officialized.
Following that, Su Yang got Pan Zhaodi to book him a ticket to Hong Kong, which was then decided that he would fly to Hong Kong next Tuesday.
During this trip to Hong Kong, Su Yang only had two things to do.
The first was to place the [Burning Reincarnation Circus] in the largest private hospital in Hong Kong and see if he would be lucky enough to recruit a stock exchange dealer.
His second task was to place a [Sentry Ward] there... So that in the future, Su Yang would not have to go through a series of complicated procedures to enter and leave Hong Kong, making it much more convenient for him to travel.
Furthermore, over the past few days, Xinli Education was successfully listed in Hong Kong's sharemarket.
On January 18, at the Hong Kong Stock Exchange Centre, the new CEO of Xinli Education, Cao Qiguang, and their new COO, Zhang Wei, banged the gong to signal the opening of their company in the stock exchange market.
Amidst the cheers, Xinli Education was successfully listed on the Hong Kong Stock Exchange.
That day, Su Yang and Zhao Licheng watched the live broadcast together. Old Cao was very excited at the venue. After he rang the gong, he spread his arms and announced, "From today onwards, Xinli has officially stepped onto the international capital market stage and opened a new chapter of its development. Thank you, everyone!"
Su Yang took a glance at Zhao Licheng. Zhao Licheng's face was expressionless, but there were ripples in his eyes.
'This... Was his dream for ten years.
'However, the person to achieve this feat was not him...'
After that, Su Yang opened an account in Hong Kong and transferred the Fengs' assets of over USD 40 million to Hong Kong. He then changed it to HKD and opened up a stock exchange account.
After that, he and Zhao Licheng started to absorb shares in small amounts and make their preparations.
The two of them were like hunters lurking in the dark, their eyes fixed on the prey that was getting fat...
After everything was settled, Su Yang did not even go to Hong Kong's Tisney to play. Instead He took a plane back to Shanghai because... Something happened to Sanque. Someone from the marketing department had gone to conduct a check.
After flying back to Shanghai, Su Yang rushed to Sanque's health supplements company and realized that the people from the marketing department had already left.
He did not blame himself for being late. After all, he had gone to Hong Kong through an official route. If he had used his special ability to fly back to Shanghai, it would have been impossible to explain once someone investigated him.
Therefore, he walked into the health supplements factory. Several employees were chatting softly.
"Will anything happen to our company?"
"I don't know. The past two days have been very scary. I think someone of a very high level personally led the team to inspect this place."
"But I didn't see what they've done yet."
"What do you mean you didn't see what they've done yet? They've been inspecting for two days now and have even personally gone to the manufacturing factory to inspect the factory. They even took away a lot of materials for testing."
Su Yang listened to the employees' discussion quietly and frowned.