,!
On December 18, the Nikkei Index closed at 16161.64 points, down 379.42 points, or 2.29%, a sharp decline!
On the 19th, the Nikkei Index closed at 15314.89 points, down 846.75 points, or 5.24%. The trading volume increased by nearly 40%, and the volume plummeted!
On the 22nd, the Nikkei Index closed at 14799.4 points, down 515.49 points, or 3.37%. The trading volume decreased by nearly 10%, and the volume shrank plummeted!
In three trading days, the Nikkei Index fell 1,744.66 points, a plunge of 10.53%!
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Affected by the collapse of the Nikkei Index, the Hang Seng Index closed at 10405.8 points and 10172.5 points respectively on the 19th and 22nd, falling 348.3 points and 233.3 points respectively, with a decrease of 3.24% and 2.24% respectively.
In two trading days, the Hang Seng Index fell 581.6 points, a plunge of 5.41%!
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"Good afternoon, gentlemen and ladies! ATIC Securities Co., Ltd. (ATIC Securities ASDAQ: ATIC) is a wholly-owned subsidiary of ATIC. It was established on November 11, 1993; ATIC Securities Company conducted a Shareholding reform, after evaluation, ATIC Securities Company's fixed assets and intangible assets are worth US$3.25 billion, converted into 1 billion shares at US$3.25 per share... The U.S. Internet highway is about to be built, and the rapid development of the Internet economy will exceed ordinary people's imagination. Tomorrow is an era for investors to speculate in stocks at home. The spring of Internet securities companies has arrived. If investors want to invest in the Internet economy, come and become one of the shareholders of ATIC Securities Company. You will be proud of your wise choice today!"
Bang bang...
Sunday, January 4, 1998.
ATIC Securities' IPO roadshow was held at the Shangri-La Hotel in New York. Chairman Sun Jian delivered a passionate speech "Looking ahead to the future of the world's first Internet securities company" off-script.
The conference hall burst into warm applause that lasted for a long time.
Sun Jian still invited Goldman Sachs, Morgan Stanley and KKA as the lead underwriters. Samuel has been promoted to deputy general manager of Goldman Sachs, Declan is responsible for the general manager of Morgan Stanley's investment department, and Justin is responsible for the general manager of KKA's investment department.
Yu Jianguo, Wang Dongming, Li Huabin, Huang Weida, Li Guocai, Sun Linjing, Liu Yue and Xiang Dongping accompanied Sun Jian to participate in the road show.
More than 200 companies and individuals, including Citigroup, Wells Fargo, Morgan Stanley, KKR, Goldman Sachs Group, Morgan Stanley, Bank of America, Abu Dhabi Ihority, Gao Fuming, Li Zekai, and Li Ka-shing, also want a piece of the pie.
After more than 4 years of rapid development, ATIC Securities Company’s registered capital has increased from US$500 million to US$3 billion, the number of employees has increased from 42 to 1,075, the securities business department has grown from 1 to 35, and the number of customers has grown to 1,031 million (U.S. investors can open up to 20 stock accounts at 20 securities companies). The company's total assets are US$6.75 billion, net assets are US$4.67 billion, and net assets per share are US$4.67. In 1997, profits were US$263.2 million, and earnings per share were 0.26. US dollars, ATIC plans to publicly issue 300 million shares at an issue price of US$7.8 per share, and plans to raise US$2,269.8 million (deducting issuance expenses), of which US$1.5 billion will be opened in 50 large and medium-sized cities in the United States. Another 50 securities business offices, US$769.8 million Used to supplement working capital.
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On January 5, Peregrine announced that in July 1997, in order to help the Indonesian Rubber Company repay its debt to HSBC, the company agreed to lend a bridge loan of US$260 million, and the Indonesian Banana Company promised to repay it by issuing fixed-rate bonds. Since Indonesia The sudden announcement of the cancellation of the exchange rate mechanism pegged between the Indonesian rupiah and the US dollar caused a sharp depreciation of the Indonesian rupiah. The Indonesian Rubber Company's plan to issue fixed-rate bonds and stocks was forced to stop. January 4 was the deadline for the Indonesian Rubber Company to promise to repay a US$260 million bridge loan. , it is temporarily unable to repay the US$260 million loan. The company is actively communicating with the Indonesian Rubber Company and strives to minimize the loss of this loan. If the situation changes, the company will issue an announcement in a timely manner, asking investors to pay attention to investment risks.
Peregrine's stock price fell in response, closing at HK$5, down HK$0.81, a plunge of 14%!
William Du and Liang Zhongtao breathed a sigh of relief. Today, the company provided 50 million Hong Kong dollars to support the market and kept the integer mark of 5 Hong Kong dollars. Although they expected the stock price to plummet, they did not expect it to fall so badly? If you have funds, you will flee in panic.
Both of them recalled that Sun Jian had predicted that Peregrine's stock price would fall below HK$5. The incredible thing finally happened. If the Swiss Zurich Group requested to modify the capital injection content, it would be a high probability event that the stock price would fall below HK$5.
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"Chairman Du, Mr. Liang, Peregrine's operating conditions and operating environment have suddenly deteriorated. According to the capital injection conditions, we request to modify the capital injection content, adjust the share price of the convertible preference shares to HK$5, and add two more directors to the board of directors."
At 9:00 a.m. on the 6th, Stephen, CEO of Zurich Group in Switzerland, and Guster, CEO of First National Bank of Chicago, came to the Peregrine headquarters together. They got straight to the point and took out the capital injection agreement they had already drawn up, asking William Du and Liang Zhongtao to revise it. Contents of the capital injection agreement signed on November 16 last year.
"Mr. Stephen and Mr. Gust, we can consider adding two directors to the board of directors. We require a premium of 17.6% on the basis of HK$5 according to the previously reached capital injection agreement, and use HK$5.88 as the price of the convertible preference shares."
William Du objected.
Convertible preference shares are issued at HK$5, and 348.75 million shares can be purchased for US$2.25, accounting for 36.43% of the total share capital after the issuance!
Once the issuance is successful, the Swiss Zurich Group and the First National Bank of Chicago will become the largest and fourth largest shareholders of Peregrine. The shares held by the Swiss Zurich Group (32.38%) will far exceed that of the Peregrine Investment Group. The shares held (reduced from 25.42% to 16.16%), the two are still directors of the board of directors. If the company wants to pass major investment decisions in the future, it depends on the faces of these two shareholders. This is the result that Du William and Liang Zhongtao least want to see. , how different is it from Sun Jian Holdings?
Convertible preferred shares are issued at HK$5.88, and 296.56 million shares can be purchased at US$2.25, which will reduce the company's total share capital by more than 52 million shares.
"Mr. Liang, HK$5 is the highest price we can offer!"
Stephen has received conclusive news that the Indonesian rupiah will depreciate sharply, and the fixed-rate bonds of Southeast Asian countries held by Peregrine will be significantly depreciated; Wall Street institutions will continue to short the Hang Seng Index, and Peregrine, one of the 33 constituent stocks, will continue to short the Hang Seng Index. It is one of the short selling targets.
"Mr. Stephen, if we inject capital at HK$5 and no preconditions are set for capital injection, we will agree!"
"Chairman Du, we have set a one-month due diligence period, and there will be no major changes in Peregrine's operating conditions and market environment."
“Mr. Stephen’s conditions are too harsh and we will not agree to it!”
Du William knew that Peregrine was choked by the other party, and the content of the capital injection agreement could change at any time, and was eventually controlled by the other party. But with Sun Jian as an escape route, he refused unceremoniously. At worst, he would be controlled by the world's richest man!
