"Now, I would like to ask Chairman Mr. Sun Jian to announce a major decision of the company."
Bang bang...
"Mr. Buffett, Mr. Gates, Mr. Case, Mr. Sun Zhengyi, Mr. Li Zekai, Mr. Justin, Mr. Justin, Mr. Declan, most of the shareholders present at the meeting are old friends. If you have money, let's make money together. With the current global Internet craze, in order to promote the rapid development of the company's Kunpeng Internet company and seize market share, the company's board of directors decided to spin off Kunpeng Internet company and plan to list it on the Nasdaq exchange in the first half of this year."
Berkshire Hathaway holds 15 million shares, Microsoft holds 12 million shares, and AoL holds 12 million shares. The previous four shareholder meetings were held in Jiangcheng, and the three companies sent representatives to participate. This time it was held in Silicon Valley. , Buffett, Gates and Case attended the meeting in person and wanted to hear what new plans Sun Jian had?
SoftBank Group holds 12 million shares and Yingke Group holds 10 million shares.
Justin, general manager of KKA Investment Department, Samuel, deputy general manager of Goldman Sachs, and Declan, general manager of Morgan Stanley Investment Department, also attended the shareholders' meeting. They will serve as deputy lead underwriters to underwrite the shares of Kunpeng Internet Company.
The shareholders' eyes lit up and they were eager to give it a try.
"After review by the Shanghai-Jiang Deloitte Accounting Firm, the net assets of Kunpeng Internet Company, which plans to be spun off and listed, are US$1.865 billion, converted into 1.865 billion shares, with a net asset value of US$1 per share; the company's total revenue in 1996 was US$627 million, with a net profit loss 165 billion US dollars; total revenue in 1997 was US$965 million, net profit was US$48.45 million; total revenue in 1998 was US$1.585 billion, net profit was US$175 million, and earnings per share were US$0.094; total revenue in 1999 is forecast to be US$2.450 billion, a year-on-year increase of 54.6 %; net profit is US$2.84, a year-on-year increase of 62.3%; it plans to publicly issue 500 million shares, calculated based on a price-earnings ratio of 200 times, with an issue price of US$18.8, and plans to raise US$9.4 billion (including issuance expenses). All shareholders present at the meeting are invited to vote."
On May 7, 1994, Kunpeng Internet Company (pIc) connected to the international Internet and synchronized with the world. pIc became unique in the country.
Kunpeng Software Group (pENG) has invested US$1.6 billion. After 4 years of rapid development, pIc has established 32 pIc branches and large base stations in 32 provinces, autonomous regions and municipalities, with a total number of employees of more than 6,500, expanded databases, and purchased music in large quantities. The copyrights of movies, books, etc. can now meet the needs of 70 million Internet names surfing the Internet at the same time.
Now it is deploying subsidiaries and large base stations in 336 prefecture-level cities. It plans to invest US$5 billion and complete them in five years. Once completed, it will be able to meet the needs of 500 million Internet users to access the Internet at the same time.
Kunpeng Internet Company now occupies 70% of the domestic Internet market share. After its IPO, it has accelerated its pace of deployment at the prefectural and municipal levels and has broad development prospects. It has been profitable for two consecutive years in 1997 and 1998. It is predicted that its profit in 1999 will increase by 62.3% year-on-year. Internet companies listed on Starkey are generally in a state of loss, which is commendable.
With a price-to-earnings ratio of 200 times and an issue price of US$18.8, pIc’s listing will be snapped up by market investors!
Driven by the global Internet boom, Nasdaq began to expand in an all-round way starting in 1998. On November 2, 1998, Nasdaq announced its merger with the American Stock Exchange and the American Stock Exchange, bidding farewell to The history of pure over-the-counter trading officially has its own stock exchange.
Nasdaq introduces capital into the high-tech field, opening direct financing channels for technology companies. Through system design, it attracts technology companies to go public. After technology companies obtain financing, they accelerate the pace of rapid development, increase their income significantly, and their stock prices soar. , allowing investors to increase their confidence, thereby increasing investment in Nasdaq-listed technology companies and start-up companies. Technology companies continue to move forward with the support of funds... The cycle repeats, the wealth effect becomes larger and larger, and financing becomes more and more The simpler it gets, the bigger the financing, the faster the tech companies grow…
When Netscape Communications IPOed on Nasdaq on August 9, 1995, it had not yet achieved profitability, with a cumulative loss of US$12.78 million since its establishment. However, the stock price rose from US$28 to US$58.25 on the day of listing, and the company's market value was as high as US$2.1 billion.
Netscape Communications took only 16 months from establishment to listing, while Microsoft took 11 years.
The Wall Street Journal lamented: It took General Dynamics 43 years to become a large company with a market value of US$2.7 billion, and Netscape Communications only took about one minute.
Amazon was founded in 1995, but has never achieved profitability. On May 15, 1997, Amazon conducted an initial public offering on Nasdaq at a price of $18 per share; in 1998, Amazon split its stock into two shares. The stock price was $86 before the split. In 1998, it continued to suffer huge losses of US$420 million, but the stock price was as high as US$87, equivalent to US$174 before the stock split, and the stock market value was as high as more than US$8.9 billion.
The huge success of Internet technology companies such as Netscape Communications and Amazon subverted the imagination of Wall Street. In order to dream of getting rich overnight, a large number of talents and venture capital poured into Silicon Valley.
From 1995 to 1998, the venture capital invested in the Internet field increased from more than 700 million U.S. dollars to more than 46.9 billion U.S. dollars, an increase of more than 60 times; the venture capital invested in Silicon Valley increased from nearly 1 billion U.S. dollars to 31.6 billion U.S. dollars. , increased by more than 30 times.
From the beginning of 1995 to the present, the Nasdaq index has risen from 743 points to 2032 points, an increase of 174%. During this period, an average of 200 technology companies are listed on Nasdaq every year. Although most of them are of poor quality, they are still ready. It is popular, with an average first-day increase of 50%.
At the end of 1998, there were 5,500 companies listed on Nasdaq, much higher than the more than 3,000 companies on the New York Stock Exchange. Nasdaq's securities trading volume reached 202 billion shares, with a daily turnover of 802 million shares, ranking first in the world. , the transaction volume is 100 million yuan, second only to the New York Stock Exchange, the stock market value is 100 million U.S. dollars (about 29% of the New York Stock Exchange), and there are 314 companies with a market value of more than 1 billion U.S. dollars.
In 1998, the world's largest company by market value, Microsoft ($272.1 billion), was born.
In 1998, America Online (AoL) rose 593%, Yahoo rose 584%, and Amazon rose 970%!
Amazon’s current P/E ratio is as high as negative 1,000 times!
Some institutions predict that Amazon's stock price will exceed $400 in 1999!
Existing economic laws can no longer explain the stock prices of these Internet companies, and the market has begun to adopt price-to-price ratios.
Kunpeng Internet Company publicly issued 500 million shares at an issue price of US$18.8. It seems that the price-to-earnings ratio has reached 200 times. However, compared with currently listed Internet companies such as Amazon, one is jade and the other is uncut jade.
How bold the man is, how fruitful the land is!
In the previous life, the Nasdaq index rose from more than 2,000 points today to more than 5,100 points in 2000. It only took one year. Sun Jian knew the craziness of network technology stocks in the previous life. Internet technology stocks increased by 10 times and 20 times. All in all, taking advantage of this opportunity, Taobao e-commerce company will also IPO in the second half of the year and be listed on Nasdaq, using funds from global investors to achieve rapid development.
