Reaching the age of thirty, my income randomly doubled-Chapter 692 - 500: The Road to Going Public

Chapter 692: Chapter 500: The Road to Going Public

The next day.

Chen Pingsheng drove his Volkswagen Phideon to the group headquarters.

There wasn’t much to do this time; the main purpose was to discuss the IPO process of Tengyou Media.

With the IPO slots allocated from Guangzhou, the path to listing would definitely be smooth; their main task was to find suitable IPO financing partners.

Theseuld also be referred to as strategic investment partners.

Currently, Tengyou Media is valued at 45 billion, calculated based on the valuation at the time when Guo Ziyi invested.

The IPO valuation is expected to be around 60 billion, rising slightly to provide early investors with a more favorable exit.

Achieving this valuation wouldn’t be easy.

After all, even Xin Teng Live Streaming hasn’t reached a market value of 60 billion to date; Chen Pingsheng arranged a meeting with Shen Nanpeng and Tong Zelan, entrusting them to ut for investment opportunities in capital markets.

The dilution from this stock issuance wouldn’t be as significant as 60% again, but rather 40%.

The IPO financing target is 24 billion.

Given the booming TikTok and the short video nomy, this target is still achievable.

It will just take some time.

If this round of financing is successful, andnsidering he still holds 35% of the shares, cashing out 40% would be 14%.

That would bring about 8.4 billion RMB, undoubtedly a substantial ime.

Then by applying the Golden Finger boost, the funding required for Tengfei New Energy’s research and development in 2019uld essentially be secured.

Shen Nanpeng suggested integrating some physical enterprises into Tengyou Media.

If relying solely on the current internet celebrities and guild livestreaming without the solid support of physical businesses, the capital market would hardly believe in its 60 billion valuation.

Tong Zelan also supported this approach, expressing that involving physical businessesuld aid in narrating a morempelling story in the capital market through a mixture of virtual and real assets.

Relying solely on internet celebrities indeed isn’t sufficient to support a 60 billion valuation.

Chen Pingshengnsidered this and saw the logic; merging a few physical enterprises wouldn’t be an issue with his diverse portfolio.

Which businesses to integrate to enhance Tengyou Media’s storability was crucial, however.

Chen Pingsheng said, “Auple of years ago, I invested 1.2 billion in Clothes Warehouse No. 9, intending to support its fashion sector livestreaming sales once Tengyou Media got off the ground. Currently, Clothes Warehouse No. 9 has direct stores in major cities; it makes sense to integrate it into Tengyou Media first.”

“That’s no problem.”

Shen Nanpeng was clearly aware of Clothes Warehouse No. 9. In the present market, investing over a billion in physical clothing stores was highly unusual.

Chen Pingsheng knew when he made this investment that it was preparation for livestreaming sales.

And now, it seemed he was right.

To inflate Tengyou Media’s valuation to over 60 billion, bundling some physical businesses was essential.

“It’s just that if Clothes Warehouse No. 9 is priced too high, investors might not accept it.”

“I invested 1.2 billion but plan to integrate it at 1.5 billion; that’s not excessive, right?”

“Not at all, quite reasonable.”

Shen Nanpeng added, “Besides Clothes Warehouse No. 9, it would be best if you also integrated some department stores tomplete the future retail sector. Once that step is done, the 60 billion valuation for Tengyou Media would be attainable.”

Department stores, Chen Pingsheng naturally had plenty.

He owned one of the earliest Tenghui Department Stores, but now, Tengyou Media would need to purchase a substantial number of stores from Tenghui Department Store, no fewer than a hundred.

This was fundamentally different from holding stocks in Tenghui Department Store, which is aoperative relationship.

Purchasing a number of stores outright meant carving out part of the outlets.

Allowing Tengyou Media to own its independent supermarket brand would clearly give it a greater advantage in future livestream sales.

Tenghui Department Store is currently valued around 20 billion, besides maintaining all its premises in Beijing-Shanghai-Guangzhou-Shenzhen and Xiangjiang.

Other cities’ premises are mostly rented.

It is no exaggeration to say that the market value of these top-tier city stores alone was nearly sufficient.

Chen Pingsheng decisively decided to sell all city stores of Tenghui Department Store, except for those in Beijing-Shanghai-Guangzhou-Shenzhen and Xiangjiang, to Tengyou Media.

A specific pricing would still require financial data calculations.

An accurate figureuldn’t be provided at the moment.

For Shen Nanpeng and Tong Zelan, spending a few extra billions to purchase supermarkets from Tenghui Department Store was trivial.

After all, they were early investors in Tengyou Media, and once it achieved a valuation of 60 billion, that investment would pay off handsomely.

It’s rathermmon business practice to acquire somere assets before ampany goes public to elevate its valuation.

Only after going public would theynsider selling non-essential assets.

Ofurse, there’s another scenario where, in order to spruce up financial reports and boost investornfidence before listing, some mislead by selling offre assets. Companies like these are generally fraudulent.

Teng You Media clearly does not belong to this category, as it has no assets to sell.

Its only option is to increase tangible assets.

On November 18, 2018, Teng You Media announced news to the public.

It acquired Clothes Warehouse No. 9 for 1.5 billion RMB in a total acquisition.

When the news came out, the capital market remained quite calm, as both Tong Zelan and Shen Nanpeng are top players in the capital market.

They werellaborating to promote the IPO of Teng You Media, aiming for a valuation of 60 billion.

This inevitably required the inclusion of some tangible assets.

On the day the news was released, Zhang Wanyi held a pressnference in Guangzhou to explain the significance of this acquisition.

The acquisition for 1.5 billion RMB, with 1.2 billion RMB as the investmentst.

With only 300 million RMB in profits, it’s still meaningful no matter how small.

Chen Pingsheng used a random amplifier once, fortunately yielding a fivefold return.

Adding up to the 1.5 billion RMB principal, he instantly had 3 billion RMB.

Although he was the sole investor in Clothes Warehouse No. 9, it was also Yao Anni and a group of people who helped to grow the business together.

All these early founders were given certain stakes, anduld only cash out after the IPO.

Now that Clothes Warehouse No. 9uldn’t go public anymore, it was merged into Teng You Media.

This meant that the dream of going public for all those senior managers holding stakes in Clothes Warehouse No. 9 was utterly shattered.

Chen Pingsheng also didn’t want to let down those who believed in him, so he released 300 million RMB as bonuses to Yao Anni and therporate executives she led.

Many of whom were directly transferred from Tengying Group.

Yao Anni personally received a reward of 80 million RMB, while the remaining 24 executives shared 160 million RMB.

An additional 60 million RMB went to nearly a hundred mid-level managers.

Each roughly receiving a cash reward of 600,000 RMB.

Thus, everyone was happy; as for the grassroots employees, their situation remained as before.

They were not significantly affected.

After merging into Teng You Media, all store managers and upper management had to start following the path of internet celebrity fashion bloggers as per Teng You Media’s requirements.

That is, full-scale live-streaming sales.

Teng You Media thereby directly gained 1,200 directly operated clothing stores, as well as over a thousand professional fashion hosts.

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Thus, therporate valuation soared.

On November 21, 2018.

Tenghui Department Store announced that it would sell all 138 Tenghui Department Store supermarkets located outside Beijing-Shanghai-Guangzhou-Shenzhen and Xiangjiang.

They set the price at 6 billion RMB, all packaged and sold to Teng You Media.

Realistically speaking, the supermarket business hadn’t been doing too well over the years, aside from the storefronts in top-tier cities, the performance of Tenghui Department Stores in other cities varied.

Selling these 138 supermarkets meant that Tenghui Department Store would henceforth focus development only in top-tier cities.

It also meant no more burdens too big to fail; upon the announcement, the stock price of Tenghui Department Stores listed in Xiangjiang soared.

Unfortunately, this moneyuld not be multiplied through random amplifiers.

Mainly because he didn’t hold much stock in Tenghui Department Store anymore, only 5%.

The 6 billion RMB ime calculated into Tenghui Group, the future usage still needed to be determined.

With these two investments, Teng You Media now owned over a thousand physical clothing stores, as well as more than a hundred super-large department supermarkets.

Aftermpleting these two investments, the narrative strength of Teng You Media became increasingly strong.

Ofurse, these two amounts of money didn’t just appear out of nowhere.

Teng You Medianducted internal financing,mpleted by the current shareholders together, totaling 80 billion RMB.

Chen Pingsheng still owned 35% of the shares, naturallyntributing 28 billion RMB himself.

A typical example of moving funds from one hand to another.

Ultimately, everyone agreed that the 600 billion valuation of Teng You Media was too low.

It must be raised to 800 billion.

Otherwise, it wouldn’t justify the 75 billion spent on the acquisition.

Fine then… Chen Pingsheng reluctantly agreed to this suggestion.

He wouldn’t have objections even if it rose to 800 billion, as long as there were still fools willing to take over.

If no one took over, then they themselves would be the fools.

After Teng You Mediampleted these asset acquisitions, digestion would evidently take some time.

Fortunately, these were all industries under Chen Pingsheng’s Tengying Group, projects born from the same parent.

Integration wouldn’t be too difficult.