Yes, Lu Tianyu chose direct listing.
The so-called direct listing, also known as a direct public offering (DPO), is a method of making a company's stock publicly traded without the help of a bank for an initial public offering (IPO).
A DPO (direct public offering) and an IPO (initial public offering) are similar in that they are both ways of allowing a formerly private company to go public and sell shares on the public market.
The difference between DPO and IPO is that IPO cooperates with investment banks to sell initial public offering shares before listing, while DPO does not need to cooperate with investment banks to underwrite the issued stocks, but starts trading existing investments on the exchange when the market opens. privately held shares.
The advantage of a company listing through a DPO is that it does not dilute the value of its shares in the market and gives early investors a way to sell their shares faster than through the IPO process. In other words, existing investors can directly list the stocks they own on the stock exchange and cash in at any time, without the lock-up period like a traditional IPO.
In addition, compared with IPO, DPO reduces many links and can greatly shorten the time required to go public.
With a traditional IPO, one or more investment banks underwrite the shares being offered. Their role is to manage many aspects of the IPO. From share restructuring to listing and circulation, the whole process takes at least one and a half years, and the listing guidance alone takes a year.
But DPO does not use it. DPO has no primary market and no securities dealers. Investors purchase stocks directly through the open market on the day of listing. The listing process can even be shortened to as little as a month or two.
For example, in another time and space, the American Spotify company. .
Spotify submitted a listing application document to the U.S. Securities and Exchange Commission on February 29, applying to be listed on the New York Stock Exchange.
Because it chose direct listing, there was no primary market, no brokers, and no intermediate links. After just one month, on April 3, Spotify was officially listed on the New York Stock Exchange.
Spotify began trading three hours after the market opened, opening at $165.90, 26% higher than the pre-market reference price of $132. The opening market value was US$29.6 billion, making it the third largest technology IPO in the United States. And became the largest directly listed company in the history of the New York Stock Exchange.
Of course, everything has pros and cons.
Although the DPO has reduced links, it has also given up the safety net provided by the underwriter and all aspects of risk prediction and assessment. The shares available for trading depend on early investors, and the available opening price will depend entirely on market demand and be affected by potential market fluctuations. This makes a DPO potentially riskier than an IPO. The ability to resist risks is also worse.
So when Zhu Xu knew that Lu Tianyu actually chose to go public directly, he was no longer in the mood to rest. He hurried back to Tianyu and found Lu Tianyu: "Mr. Lu, what's going on? Didn't you promise me that Tianyu would not choose to go public in the near future?" Is it going public?”
"Oh! You said this, Director Zhu, I did promise you that Tianyu would not choose to go public in the near future, but the plan could not keep up with the changes. I did not expect that after the music festival, our Tianyu's exposure would be so high. This is a good opportunity. "
"Good opportunity? I seem to have discussed with you before that after Wang Xuan left Tianyu, Tianyu no longer has the foundation to go public. Even if Mr. Zhuang Ye and Mr. Li Gang join Tianyu, Tianyu still does not have the foundation to go public. This is What kind of good opportunity is this?"
"No, during your absence, I asked professionals to evaluate it. As long as Mr. Zhuang Ye and Mr. Li Gang join Tianyu, our Tianyu is fully capable of going public."
"Have you asked someone to evaluate you? It seems that Mr. Lu doesn't trust me at all. That's okay, even if Mr. Zhuang Ye and Mr. Li Gang join Tianyu, our Tianyu has the foundation to go public, so why did Mr. Lu choose to go public directly? ? Does Mr. Lu know what direct listing means? Does he know how risky direct listing is?"
"I definitely know. I have also consulted professionals on this. Direct listings are greatly affected by market fluctuations."
"Do professionals only tell you that direct listing is only affected by market fluctuations?"
"Otherwise there will be other effects?"
"It seems that the professional you hired is not very good. The biggest difference between IPO and DPO is that the IPO process will go through multiple rounds of evaluations, various assessments, various risk predictions, and research, and the company will be discovered in a timely manner. Provide solutions to the shortcomings and greatly enhance the company's ability to resist risks after listing.
The DPO does not have these processes, the company does not know its own shortcomings, and its ability to resist risks after listing is very poor. Once a problem arises and cannot be solved immediately, and some thoughtful people take advantage of it and fan the flames, investors will panic and lose confidence in the listed company. The stock price will plummet, and the company will be finished!
So even if you want to list Tianyu, you should go for an IPO. "
"The problem is that IPO takes too long. It takes nearly 2 years to complete a set of procedures. It is too wasteful. Tianyu finally gained a lot of popularity and popularity at the annual music festival. If it is not used, the day lily will be cold in two years. .”
"There will still be new popularity after two years. The IPO is for safety. If we don't go to the IPO and go public directly, Tianyu may not be able to survive for two years. If there is a slight disturbance, it will be over. Why waste it?"
"No, our Tianyu is now prosperous. The music and film circles are in full bloom, and there are many talents in various fields. We will not reach that point."
"Haha! Tianhai also blossomed in full bloom back then, even more than Tianyu. What's the result?"
"The problem is that Tianhai is not listed. After Tianyu is listed, we can use the funds raised after listing to expand operations, improve market competitiveness, standardize the company's rules and regulations, organizational structure, and even completely transform the company. Tianhai and us Can it be compared?"
"Believe me, after Wang Xuan left, Tianyu now is definitely worse than Tianhai before. Tianhai's plate at that time was bigger and more stable than Tianyu's."
"Wang Xuan, Wang Xuan, Wang Xuan again, it's Wang Xuan again and again. Tianyu can't function without Wang Xuan? Now we have Zhuang Ye and Li Gang. In what way are they worse than Wang Xuan? "
"It seems that you can't stand what I say anymore. That's okay. Thank you, Mr. Lu, for taking care of me all these years." Zhu Xu shook his head and smiled a little self-deprecatingly.
"What do you mean?" Lu Tianyu frowned, having a bad feeling.
"Literally, I will resign later. As for the shares donated by Mr. Lu, they will be returned to Mr. Lu intact. I wish Tianyu good luck." Zhu Xu said.
"Isn't that true? Just because of Wang Xuan, do we need to go to this point?" Lu Tianyu frowned even more.
"It's not Wang Xuan's problem, it's just that I'm a little tired."
"You can rest when you're tired. Didn't I grant you a month's leave?"
Zhu Xu shook his head: "There is no need to persuade Mr. Lu, I have made up my mind."
Lu Tianyu didn't understand at all that some tiredness could not be recovered through rest, such as heart tiredness.
How tired is Zhu Xuxin? He has been with Tianyu for ten years and has been working hard to develop Tianyu for ten years. Under his hard work, Tianyu has developed from a small film production company into a first-class company in the entertainment industry.
Especially after Wang Xuan joined Tianyu, he saw the light of day.
To be honest, it was not just Lu Tianyu who had ambitions. In fact, Wang Xuan's joining also made Zhu Xu also have ambitions.
Before Wang Xuan joined Tianyu, Zhu Xu had a small goal in mind, just to help Tianyu survive in the entertainment industry.
Yes, it's that simple.
But in fact, this goal is not easy. At that time, Tianyu was said to be a first-class company in the entertainment industry, but it was only good at the film and television industry. It had no achievements in the music industry and was very poor in other aspects.
It's not easy for a lame entertainment company like this to survive in the entertainment industry. It's okay if a giant company ignores you, but it's very easy to mess with you.
Until Wang Xuan joined Tianyu, Wang Xuan's visible musical talent still made Zhu Xu unable to help but have ambitions. His goal was no longer to lead Tianyu to survive among a group of giant companies, but to lead Tianyu to be on par with the giant companies. , launching an attack on giant companies.
But he kept this ambition deep in his heart and never mentioned it to anyone, because he understood that this was obviously not an ambition that could be accomplished in a short time. The existence of Wang Xuan is undoubtedly the most critical link in whether he can realize this ambition.
In the end, Lu Tianyu actually committed suicide and took Wang Xuan away!
At that time, Zhu Xu was very tired and thought about leaving Tianyu directly, but Tianyu had his ten years of hard work and ten years of hard work to get where Tianyu is now, and Zhu Xu still couldn't let go.
But he was really tired and it was difficult to work in this state, so he simply took a month's leave.
But before asking for leave, he talked with Lu Tianyu for a long time and analyzed a lot for Lu Tianyu. The purpose was to make Lu Tianyu understand that after Wang Xuan left Tianyu, Tianyu no longer had the foundation to go public.
If Tianyu wants to go public, it must be done slowly
At that time, Lu Tianyu also made a good promise, promising that he would not mess around and would not list Tianyu in the near future. As a result, within a few days of his vacation, Lu Tianyu was going to list Tianyu, and it was going to be listed directly!
Tianyu's foundation is very illusory. It seems to be prosperous now, but this is all an illusion brought by Wang Xuan. After Wang Xuan left, Tianyu was very reluctant to go public through the IPO process. Listing directly would be simply courting death!
So he ended his vacation immediately and returned to the company to persuade Lu Tianyu. As a result, Lu Tianyu had already made up his mind. He was dazzled by the prospect of going public and couldn't listen to what he said.
In that case, why would he stay? Are you going to stay and watch Tianyu go to destruction step by step?
Wang Xuan's departure certainly made him feel tired. Lu Tianyu's distrust also made him feel tired. But knowing that Tianyu Entertainment would be destroyed but unable to change it was what made him most tired.
Tianyu is like his child, raised by him personally. He couldn't bear to see Tianyu, which he had built with his own hands, perishing, which was the real reason why he wanted to leave Tianyu.
"Okay. Director Zhu, I'll let Xu Ke take your place temporarily. You can leave after handing over the work to him."
"Can."
"As for your dry shares, I will recover them from you at the current market valuation price."
"No, I have gained a lot in Tianyu, which is enough to offset my efforts. So the shares will be transferred directly back to you, and you can do with it what you want."
"That's okay. Director Zhu, actually I can't bear to let you go. You have always made me feel at ease. So if you want to come back to Tianyu one day, you must come back. Anyway, Tianyu's door will always be open to you."
"Thank you Mr. Lu for your love. If one day comes, I will consider it." Zhu Xu said.
Zhu Xu has always been very serious about his work. He likes to keep everything in order and also likes to make plans and memos, so the handover went very smoothly.
It only took three days for Zhu Xu to complete the handover with Xu Ke.
After leaving the door of Tianyu, Zhu Xu took a few steps forward, then turned around and looked back at the entire Tianyu.
do not!
Lu Tianyu told him that if he wanted to return to Tianyu one day, Tianyu's door would always be open to him. He said at the time that if there ever came a time, he would consider it. But in fact, I understand that it is impossible for him to return to Tianyu.
It will never be possible to come back to Tianyu.
In a year or two, whether Tianyu will still exist or not will be a question.
In short, bless Tianyu!
He hoped that his expectation would not happen. Although he left Tianyu, he still hoped that Tianyu would get better and better.
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