Vol 5 Chapter 479: IPO trouble

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Huang Weida's Fidelity Investment Company is Zhang Guan's sole agent for overseas investment. The scattered pieces over the years have also helped Zhang Guan make a lot of money.
In the beginning, in 2004, Zhang Guan got the first pot of gold through Bocai, and then through Fidelity Investment, he bought the shares of the fruit company, invested in the newly born social media FB, and bought some real estate on Hong Kong Island. . In the next few years, almost all the money Zhang Guan earned, as long as it was foreign currency, was handed over to Fidelity Investment to take care of it.
Zhang Guan went abroad to participate in the competition, the prize money must be paid in foreign currency, and some foreign business activities, the remuneration is also foreign currency, and in recent years, Zhang Guan invested in F1 team, the 500 million US dollars of gambling, boxing appearance fees and bonuses Wait, but it is all hundreds of millions of dollars of income. Compared with the previous multi-million-dollar game bonuses, it can only be regarded as change.
Fidelity Investment has also become a first-class investment company on Hong Kong Island. However, Hong Kong Island is a world-class financial city after all, and the financial industry is extremely developed. The tax revenue generated by the financial industry is as high as 50 billion Hong Kong dollars. Such as investment companies, fund companies, and insurance companies are everywhere, so Fidelity Investment It does not seem obtrusive.
After years of cooperation, Zhang Guan has also accumulated more trust in Fidelity Investment, not to mention Fidelity Investment's investment return rate, Zhang Guan is also very satisfied. Being able to make money is naturally the basis of cooperation between the two sides.
On weekdays, Fidelity Investment mostly distributes monthly reports to Zhang Guan. Over the years, there have been few such rushes to find Zhang Guan.
After seeing the text message, Zhang Guan did not hesitate to call back to Huang Weida.
"Mr. Huang, I was on the plane just now and there is no way to answer the phone. Is there anything urgent about your side?" Zhang Guan asked.
"It's something in the United States, it's really urgent." Huang Weida continued: "Do you remember when you first met in 2004, did you name the investment FB? I really admire your vision now. An obscure piece of software is now the world’s first social software. On our Hong Kong Island, every two people in China, one person uses FB."
"FB? Are you looking for me about FB?" Zhang Guan recalled that it is now April 2012. FB should enter the final sprint stage of the IPO, and then asked: "Is it related to FB's IPO?" "
Huang Weida was a little surprised, he didn't expect to mention FB, Zhang Guan even thought about IPO.
"Yes. It is related to the IPO." Huang Weida then introduced FB's IPO situation.
Since the investment of Zhang Guan in 2004, FB has developed rapidly. In 2005, it received a venture capital of 10 million US dollars. In 2005, it received a venture capital of nearly 30 million US dollars. Then FB faced all the crowds. After the registration was opened, it expanded rapidly. Last year, FB's active users worldwide exceeded 800 million.
Therefore, on February 2 this year, FB formally submitted an application for a public offering, that is, an IPO, to the US Securities and Exchange Commission, and plans to raise US$5 billion. This IPO was also the IPO transaction of the largest technology company in the history of the United States at that time. The market estimates that after IPO, FB's valuation will reach 100 billion US dollars.
The IPO process is going smoothly, the market is generally optimistic about the prospects of FB, and Morgan Stanley is also the main underwriter of FB listing transactions, in addition. JPMorgan Chase, Goldman Sachs, Bank of America Merrill Lynch and other financial giants will also be responsible for underwriting.
The time when FB landed on Nasdaq was determined to be May 18, which is a little more than a month away. It can be said that the most critical moment of the IPO, but at this time, the US Securities and Exchange Commission found it. One problem is that Hong Kong Fidelity Investment, the second largest shareholder of FB, turned out to be not a direct investor, but an entrusted investment.
Entrusted investment is that the principal deposits the funds in advance into a financial trust institution as an entrusted investment fund, entrusts the financial trust institution to invest in its designated joint venture or investment unit, and conducts the use of the investment, the operation of the investment unit and the profit dividend, etc. A financial trust business that is managed and supervised.
To put it bluntly, this is a specific trust business. Unlike ordinary investment companies, the investors entrusted to invest have formulated investment units. That is to say, once FB completes the IPO, the second largest shareholder is not Fidelity Investment, but the principal behind Fidelity Investment.
It is because of this that it causes unnecessary trouble.
The US financial market does not exclude foreign investors. For example, in this FB IPO, the Russian DST investment company holds certain preferred shares. Today’s IPO can allow them to obtain a ten-fold return; for example, Hong Kong Li Chaoren of the island also owns a 3% stake in FB, and he can also get rich returns after the IPO.
With the precedent of Li Chaoren, it should be said that Fidelity Investment, which is also Hong Kong Island, should also be unimpeded, but the US Securities and Futures Commission is concerned that the investor behind Fidelity Investment will have some official background from Eastern Powers. Therefore, the US Securities Regulatory Commission requires Fidelity Investment to disclose the information of the client. They are worried that this is not a pure business act. They are worried that such a large American company, but also a social networking company, will eventually be controlled by another big country.
In fact, the FB company implemented a double-layer equity structure of Class A and B. At that time, Zhang Guan made concessions in this regard in order to invest in FB. Therefore, the FB shares held by Fidelity Investment are all Class B shares and are sold. Although the price and dividends are the same as those of Class A stocks, the voting power of the board of directors is only one tenth of that of Class A stocks. Therefore, the US Securities and Futures Commission’s worries are not necessary. However, based on ideology or state-to-state competition, the US Securities and Futures Commission has requested that Fidelity Investment disclose the information of the client. Otherwise, they will call this IPO.
As the largest IPO in the history of the US technology company, if it is called off, the impact will be even greater. For the business with a valuation of 100 billion US dollars, how can Huang Weida not worry.
In fact, this practice of the US Securities Regulatory Commission has violated commercial rules. For example, in the case of such entrusted investment, many in the United States, such as American Jews, prefer to use entrusted investment. For historical reasons, after World War II, the Jews did not dare to expose their wealth blatantly, so they used commissioned investment to run their business empire.
Another example is that some old financial families in Europe have accumulated capital since the colonial era, saying that they are rich and rival countries, that is to look down upon them! They have more money than a country, but on any list like Forbes Wealth List, have you ever seen their names? They are more as principals, hiding behind the scenes. They can own the same company through different investment companies. The appearance looks like different companies hold equity, but in fact the big boss behind the scene has only one person.
Therefore, although there are certain drawbacks to this kind of entrusted investment, it is an act of tacit approval, and the matter that the US Securities Regulatory Commission requires Fidelity Investment to disclose the identity of the principal is really a violation of the rules.
This kind of thing, Huang Weida certainly can't make up his mind, so after receiving the request from the United States, Huang Weida found Zhang Guan immediately and hoped that Zhang Guan would make a decision.
And Zhang Guan is also thinking about the pros and cons... (to be continued.)