"Huang, we only have three days left before the IPO, but you still have over 1.3 billion shares that haven't been pre-ordered. This will severely impact the pricing at the time of listing. I suggest you find a way to deal with these 1.3 billion shares immediately, otherwise, the IPO price will not reach our target of $50 per share!" Dr. Cooper advised Huang laoban patiently over the phone. They had been talking for over ten minutes, with Dr. Cooper repeatedly explaining a very simple principle: the remaining subscription shares that had not been redeemed through listing codes must be cleared before the official listing.
"Dr. Cooper, we signed an agreement. You must help me sell the shares at a total market value of $500 billion, which means $50 per share!" Huang He insisted.
"Huang, why can't you understand? Your current level of subscription is not enough to get the Federal Securities and Exchange Commission to approve your price of $50 per share. It's not that I can just list it at this price if I say so; it requires approval from the commission!" Dr. Cooper repeated his words helplessly.
"Dr. Cooper, people say the Federal Securities and Exchange Commission is run by your family. Can you help me pull some strings and go through with this price?" Huang He sighed.
"Huang, we've been rivals for so long, I don't mind being honest with you here. I might have some friends on the commission, and my words might carry some weight, but it's absolutely not enough to set your IPO price at $50 per share with the current subscription rate."
"Out of the 2 billion shares you offered for subscription, only 600 million have been sold, and the subscription price was $30 per share. In this situation, you still insist on $50 per share."
"According to the regulations of the Federal Securities and Exchange Commission, if the overall subscription rate does not reach more than 70%, the stock is not allowed to be listed and must be sent back for repricing."
"I'll be blunt now: either the Securities and Exchange Commission cancels the IPO in three days, or you find a way to subscribe for another 800 million shares, in which case I can help you with the IPO at $30 per share. Otherwise, we part ways. I really can't take this job."
"Dr. Cooper, we have a contract."
"Yes, but the contract clearly states that if affected by irresistible factors, the contract is invalid. The Federal Securities and Exchange Commission is such a factor, and its rules clearly state that if you don't meet their standards, they must send it back for repricing. Goldman Sachs bears no responsibility for this, and even if you sue me in the Supreme Court, the Supreme Court will rule the same way!" Dr. Cooper said unapologetically. In his opinion, that so-called contract was worthless. He had never intended to help 00 Network go public at $50 per share; it was impossible.
"Alright, I can compromise!" At this moment, Huang laoban finally relented. "It's $48 per share, that's my bottom line."
"Huang, are you kidding me?"
...
The two argued about the price for a full hour over the phone. In the end, Dr. Cooper managed to bring down the price of 00 Network from $50 per share to $40 per share. Huang He then refused to lower it further. His stance was very clear: the pre-sale subscription price through listing codes was $30 per share. If the issuance price on the IPO day was lower than $40 per share, it would likely dissatisfy the investors. Therefore, the issuance price of $40 per share was non-negotiable.
Otherwise, 00 Network was willing to withdraw from the IPO. With billions of dollars in profit each year, why share it with shareholders?
"Fine, I won't argue with you on the price anymore. But you must find a way to achieve another 800 million shares in subscriptions, otherwise, it's impossible to go public, and the Federal Securities and Exchange Commission won't approve it!" Professor Cooper stated his core objective: to secure the subscription of 800 million shares at all costs.
These 800 million subscription shares, at $30 per share, amounted to $24 billion, which was not a stock that could be sold in a short period. Only giants like Goldman Sachs had the capacity to absorb it.
Therefore, if 00 Network wanted to sell, the shares could only be sold to Goldman Sachs, and Goldman Sachs would easily achieve its goal.
This was the core reason why Cooper was pressuring Huang laoban.
However, the next second, Huang He chuckled, "Dr. Cooper, I've just consulted some of my friends, and the Federal Trade Commission actually has no strict rule of 70% subscription; it's just been a convention."
"But according to the commission's actual rules, the number of shares subscribed has no real meaning, and even the listing price is not fixed. It entirely depends on how the company responsible for the IPO operation prices it, and whether the Federal Securities and Exchange Commission approves the final price audit."
"So, don't talk to me about strict rules. I want to go public with the current situation!" Huang He said.
"Then I am truly sorry to tell you that the Federal Securities and Exchange Commission will never approve the listing of a stock with such a terrible roadshow, never!" Dr. Cooper, unfazed by his trick being exposed, continued to apply extreme pressure on Huang laoban. Then he heard Huang He say, "I've decided to report it to the Federal Trade Commission at $50 per share. This is stipulated in the contract. Unless I voluntarily change the price, you must list it at this price."
"Then I guarantee that price will absolutely not be approved!" Dr. Cooper responded without courtesy.
"It doesn't matter. If they don't approve it, then I won't list it. When 00 Network can earn fifty to sixty billion dollars a year, I'll come back and see! For now, Goldman Sachs just needs to report it at this price, otherwise, I will sue you in the Federal Supreme Court."
"This is a foolish decision, you..." Before Dr. Cooper could finish, he heard the beeping sound of the phone hanging up. Clearly, Huang laoban had directly hung up, giving Dr. Cooper no chance to speak further. Enraged, Dr. Cooper slammed his Tianzhou terminal against the wall.
"Then report it at this price. If we don't let this arrogant guy suffer a bit, he'll never understand how the capital market really works!" Dr. Cooper said to his new head secretary.
The secretary nodded and began the final operations with great efficiency.
"Sir, do you need me to contact some friends at the commission to indicate our stance?" the secretary asked.
"Well... forget it. With such absurd data and pricing, it's impossible for the commission to approve. Those commission members are insatiable jackals. If we want them to reject it, we'll have to spend millions of dollars. There are many places to spend money recently, so let's save where we can!" Dr. Cooper said dismissively, a statement he would regret for the rest of his life a few days later.
"Sir, when the rejection letter from the Federal Securities and Exchange Commission arrives, do you need me to inform you immediately?" the secretary asked carefully.
"Whatever, it's coming anyway!" Dr. Cooper waved his hand dismissively. In his opinion, the Federal Securities and Exchange Commission would never approve such a foolish and crazy price.
In the following three days, Dr. Cooper indeed did not receive any report about a rejection letter from his secretary. He didn't think much of it, but as time went by, his secretary's demeanor became increasingly anxious, prompting Dr. Cooper to frown and ask, "You are the top talent I handpicked, how can you not even maintain basic composure?"
"Sir, there's something I don't know whether I should report to you."
"If it's important, then say it!"
"But you told me not to report this matter to you."
"Then don't say it."
"But if I don't say it, it will be too late. In another 8 hours, they will be ringing the bell to go public!"
"Ringing the bell, so what? Every month... Wait, you said who has 8 hours left to ring the bell and go public?" Dr. Cooper's expression instantly turned extremely ferocious. The secretary then fearfully reported the situation.
It turned out that he still had not received the rejection letter from the Federal Securities and Exchange Commission regarding their quotation. Normally, this letter should have been returned within 48 hours of submission, but now 59 hours had passed, and they still hadn't received a reply. This meant that the Federal Securities and Exchange Commission had most likely approved the quotation, allowing 00 Network to go public. xxs壹贰
"This is impossible!" Dr. Cooper was stunned. But he knew that this secretary would never lie, so he immediately called his friends at the Alliance Securities and Exchange Commission to inquire about 00 Network.
"Oh, Cooper, my old friend. I swear to God, if it weren't for our years of friendship, I would never have voted in the review meeting to approve this outrageous price. Are you planning to create a stock that is the world's number one from the moment it lists?" his old friend at the Federal Securities and Exchange Commission said with a chuckle.
"..." Dr. Cooper's expression became extremely awkward. He suddenly realized that his own lack of a statement was, conversely, a statement of support for 00 Network. After all, Goldman Sachs had never encountered such a request to mess up its own stock, so the entire commission would subconsciously believe that Goldman Sachs supported it, and had simply not taken the initiative to state it.
"But my old friend, with such an outrageous price, did you really agree just because of my face?" Dr. Cooper asked through gritted teeth.
"What do you mean? Don't you want this stock to be listed? You didn't have this attitude a few months ago when you asked us to simplify all procedures and approve this stock's listing!" How clever this old friend was, he immediately grasped from Dr. Cooper's tone and wording that Goldman Sachs's attitude had changed.
"Things have changed a bit; this company is out of control. I wanted to teach him a lesson. I thought you wouldn't agree to such an outrageous price, so I forgot to say it proactively. You wouldn't think too highly of Goldman Sachs, would you? What about the representatives from other financial institutions? Did they all nod in agreement?" Dr. Cooper questioned.
"Uh... it seems that's the case. In the entire commission, except for the independent representatives without the support of financial institutions who voted against it, all other committee members with backing voted in favor. Thus, the company's listing price review was passed with an overwhelming majority of 72 votes to 9... I thought you had managed to get all the committee members and the financial institutions behind them to agree to this outrageous price?" the old friend was also incredibly surprised.
"What the hell is this?" Dr. Cooper was completely bewildered. He couldn't figure out the reason for a moment and could only helplessly ask, "Can we urgently reject their listing now?"
"That's impossible. The next commission meeting is in five days. It's impossible to gather so many committee members to hold another meeting in such a short time. Moreover, even if all the committee members under you voted against it, it would only be 61 votes to 20, which would still not prevent the listing!" This statement finally shattered Dr. Cooper's fantasy. He could only stay up all night, and finally, through live television broadcast, he saw the 00 Network delegation, represented by Leng Zhiruo, appear before the Nasdaq trading market's golden bell and powerfully ring the first bell for the IPO.
Behind them were all the financial institutions applauding vigorously.
At this moment, Dr. Cooper, who couldn't understand it, suddenly had an epiphany.
Almost all the financial institutions had exhausted all their strength to create listing codes and subscribe to 00 Network's shares at $30 per share.
But if 00 Network's IPO failed this time, the entire process would have to start from scratch. Therefore, the subscription funds collected earlier would be refunded in full to the accounts of each institution. But the problem was, even if the money was returned, what about the listing codes?
Even if the listing codes were returned, what practical meaning did this useless item, apart from subscribing to stocks, have?
The achievements of these institutions, which had spent one to two months and countless efforts in stirring things up, would all be wasted.
People can never accept such sunk costs. Thus, these financial institutions, in a rare display of unity, collectively ordered their committee members in the Federal Securities and Exchange Commission to vote in favor of this outrageous listing price.
After all, the higher the listing price, the better, as it would make the shares they bought at $30 per share appear more valuable.
"Huang He, did you plan this all along?" Dr. Cooper felt a chill run down his spine.