YM778.TV Chapter 232 - 182 About My Family’s Large Courtyard Part 2
An assessment of three billion for Bobo isn\'t actually a big problem.
The profit from the more than one hundred direct stores has always been quite good, and now there are over six hundred franchisees as well.
After comprehensive evaluation, it\'s about three billion.
The assessment given by the securities company, including two executives, was 1.5 billion.
Tong Zelan wasn\'t too satisfied; she was sure that after July she would negotiate the price to around 2.5 billion.
Once she reached a price of 2.5 billion,
that meant the 60% equity stake would be equivalent to 1.5 billion in IPO financing.
After they secured this money, the remaining stock issue would be up to the two securities companies.
In other words,
the two securities firms would use 1.5 billion to buy the 60% stake from them.
The higher the share price they sold, the more they would earn.
If it fell below the issue price, it would mean losses for the shareholders.
They were basically just middlemen, not taking on too much risk.
To put it plainly,
it\'s the securities companies buying the 60% stake from them and then using those stakes for additional issues and listings.
Ultimately those shares would reach the hands of countless investors, with the securities companies acting as intermediaries.
Chen Pingsheng didn\'t have to worry about too much.
Once they got the 1.5 billion, everyone would have to give up 60% of their shares.
Take for example the 8% stake he gave to Zhao Liying.
After this IPO was completed, she would only have 3.2% left.
The other 4.8% would have to be relinquished.
In return, she would receive 1.2 billion in cash.
Of course, the money wasn\'t handed out for nothing.
In the process, she had to keep endorsing Bobo Milk Tea, ensuring that its stock price could continue to rise after listing.
As for Yang Mi, she owned 15% of Bobo Milk Tea and would directly have to give up 9%, receiving an income of about 2.2 billion.
Tong Zelan took the trouble to go to Xiangjiang to look for resources and help Bobo Milk Tea get listed because she owned 30% of the shares, which meant giving up 18% of them.
She would receive an immediate investment income of almost 4.5 billion.
With the remaining 12% of shares, she could still cash out in the stock market later on.
If she could get listed, the total income from this venture would be in the range of six to seven hundred million.
A very successful investment case indeed.
This is why investors always hope for companies to go public.
One move could return their initial investment manifold or even a hundredfold.
Relying on profits?
That would take forever.
…
Bobo Milk Tea\'s listing was still a few months away.
The reason Chang Fu wanted to learn about this was mainly because Yang Qian had acquired a 5% equity stake there.
Once the listing was completed,
Yang Qian could also easily achieve financial freedom based on this stake.
Such is the allure of the capital market, drawing in countless people eager for the pursuit of a public listing.
The atmosphere of the Elegant Teahouse remained very comfortable, with two large begonia trees standing outside the floor-to-ceiling windows.
The breeze fluttered in, swaying the branches gently.
Besides the smooth progress of Bobo Milk Tea, the sales of Hua Qiangu\'s merchandise were booming more and more.
The sales figures now
had far exceeded the expectations of Hu Ding, his classmate from president class and a toy tycoon.
Mainly it was because Hua Qiangu was too popular.
Not only did the Sword of Forgetting co-branded milk tea from Bobo Milk Tea explode in the market,
but also the merchandise,
like Tang Bao plush toys, Palace Bell, Sword of Forgetting, and Hua Qiangu\'s clothing replicas, all had surging sales figures.
As estimated by Tong Zelan,
the sales from these products could very likely surpass two billion.
Keep in mind that they are selling these products online at a high price and low cost,
with gross profit around 80%.
Which is to say, costs only account for 20%, reflecting the profitability of licensed products.
Chen Pingsheng could also make a handsome profit from this.
The seeds he planted last year were ready to be harvested this year.
Sipping tea in the yard, with a steady stream of money flowing into his account, that kind of feeling is known only to those who experience it.
As for his other business ventures,
Tengsheng Fruit no longer needed much of his management, and the fresh produce also came from there. Their team was still gradually expanding and digesting the one billion funding.
As for Tenghui Department Store,
there was one just a short distance from his exit, making shopping very convenient for him.
His life, the Small Day, was indeed quite comfortable.
On the other hand, Liu Fen felt dizzy from her losses; she and her family members were chatting in the parlor.
Sitting in such a room
gave one the feeling of strategizing national affairs; a wooden floor, six old-fashioned sofas arranged in a semi-circle, with a small wooden cabinet beside each sofa.
An enamel cup rested atop, with the beautiful begonia tree visible through the floor-to-ceiling window.
Just think, isn\'t that impressive?
The parlor was chiefly for business receptions, and Liu Fen, cradling Chen Xinyi, was there with a few old girlfriends, now all looking dejected as wilted eggplants.
"Sister, why not ask your son-in-law what the heck is going on with the stock market nowadays?"
"Yeah, the few stocks I bought, it\'s only been so long and they\'ve all plummeted by more than half."
"Sigh! It\'s really a long story."
Liu Fen was also feeling the pressure but she put on a brave face. Despite their exaggerated talk, the combined amount lost was less than the value of the bathroom in this house.
"My son-in-law has also bought fifty million worth of Vanke Shares, and he\'s still holding them, so we shouldn\'t be in such a hurry, right?"
"Can we compare with him?"
The cousin said, "Do we even need to say what your son-in-law\'s situation is? Just look at this grand courtyard. Isn\'t it worth a few hundred million just to settle in Capital City?"