Hanfrai was a loyal fan of ERV.
He was very optimistic about its future.
However,
the issuance of stocks in the United States was different from Huaxia. New shares were ’allotted’ by the underwriters who contacted clients in advance to sell them, unlike in Huaxia, where shares could be applied for directly.
But there was no small chance of breaking the issue price.
FACEBOOK had the sa experience back then, with the stock price falling below the issue price on the day of the listing. Thus, the frenzy for new stock subscriptions in the United States was not high, unlike in Huaxia, where buying new was almost always profitable.
On average, more than a hundred companies went public each year.
Two to three hundred companies were delisted.
Such high delisting risks made the investnts over here more rational.
That was the reason for the ’road show’ elent.
It was to give investors confidence.
If it was ordinary stock,
Sales would be a problem.
But with ERV,
in just three days, it was fully subscribed.
Ordinary custors couldn’t even scramble for it, and in the U.S., new stock subscriptions were not a retail investor’s ga. Retail investors could only trade in the secondary market, while the most delicious slices of the cake were, of course, reserved for big clients who had ongoing cooperations.
Hanfrai didn’t used to speculate on stocks.
He wasn’t a major custor of securities brokers or investnt companies.
Naturally,
Even though he had tens of millions of US dollars in the bank,
He hadn’t gotten his hands on any new ERV stocks. In fact, it would have been possible, but it was too much trouble. Hanfrai disliked hassle, so since he couldn’t buy the new stock, he decided to buy on the stock market instead.
Anyway,
He didn’t think he would lose money.
If you could lose money investing in a company like ERV, then there were hardly any companies worth trusting.
"Billy, what about you?" Hanfrai asked.
Afterwards,
Billy’s ’crafty’ voice ca through.
"Heh heh, I got my hands on so new ERV stock, two million US dollars’ worth."
"How much do you plan to sell it for?"
"Sell? I don’t have that plan right now. I’m optimistic about ERV’s future," said Billy, who as a person of high intellect always felt playing gas was beneath him. Now when playing gas, he felt his intellect wasn’t up to par.
People like him,
Had considerable respect for those more formidable than themselves.
He was preparing for a long-term investnt.
"Just like I thought. I’ll spend the ten million dollars, and then I won’t worry about it," Hanfrai laughed too, perhaps this would be the highest return investnt of his lifeti.
"Then let’s just wait for tomorrow’s listing ceremony."
"Okay."
For such a significant event,
There would definitely be dia live broadcasts.
ERV,
Had already beco the capital market’s annual feast.
...
Goldman Sachs.
Headquarters.
The eting concerning ERV’s listing had been going for over an hour.
Yet, nobody in the room felt tired; rather, they were invigorated because they would witness the rise of another great company, a point the analysts confird with utmost certainty.
And the market’s response
Gave them even greater confidence.
ERV’s IPO amounted to forty billion US dollars, with Goldman Sachs underwriting forty percent of it, the highest portion among all securities brokers. Now, all the shares were underwritten and received unanimous praise from major clients.
When they first started the listing process,
They all thought ERV was truly crazy.
Forty billion dollars.
Twenty percent.
That ant ERV was valued at two hundred billion dollars.
Such figures
Were unprecedented in history. The frantic rush of their clients nearly tempted all the major brokers to use their over-allotnt option, which ant if brokers sold well, they could offer an extra fifteen percent of the shares to their custors.
Initially ant to issue a hundred shares,
With so many buyers,
Brokers could increase it to one hundred fifteen shares, bringing the total IPO scale to forty-six billion US dollars.
Nevertheless,
Considering the increase of circulating shares, after all, it was a destabilizing factor. Capital’s chase for scarcity was more advantageous than satisfying them, so they didn’t use their over-allotnt option.
Less at,
Highlighted its significance even more.
If it were a company without potential, they would opt to use it, as selling more is always good.
But ERV was different.
It had boundless prospects.
There was a lot of room for future operations, so they didn’t care about such ’trifling profits.’
"After ERV’s listing, clear out the orders in your hands. This ti, we must fight a battle that history will rember," the investnt departnt manager, his face flushed with excitent, told the traders before dispersing the eting.
As an investnt company,
And also a securities broker,
The capital they managed was beyond what outsiders could imagine.
In response to ERV,
Clients were calling with a single demand—buy. Of course, it wasn’t an irrational buy, but a reasonable allocation, investing ten to twenty percent of their funds in ERV’s stock—
Was the operation of most.
Goldman Sachs held a large number of shares.
They would also throw out so when the ti ca.
Otherwise,
If everyone held on to their shares,
How could the stock price grow?
You have to know,
The stock market is a zero-sum ga.
No money is created out of thin air, nor does money disappear into nothing. For example, if a stock is worth ten dollars, to increase its price to eleven dollars, sobody has to bid eleven dollars, and a transaction has to be reached between the parties.
Otherwise,
The original price of ten dollars,
Even if soone bids a hundred dollars, if there’s no transaction, the stock price remains ten dollars. Therefore, stocks only showcase their full value when they are in circulation.
Individuals tend to hold for the long term.
Investnt companies lean towards frequent trading.
...
Apple.
Headquarters.
Watching ERV, which had been the hot topic for months,
Steve Jobs felt a bit disappointed.
He had thought the release of the first-generation Apple product would keep Apple in the dia spotlight for a considerable ti. Yet, all his expectations were wishful thinking. Not long after the release,
ERV ’went crazy.’
Announced it was going public.
Initially, the Board of Directors talked about a fifteen billion dollar IPO, which later increased to forty billion dollars. It went that high, so it did, and you sold out so quickly with a long queue still waiting!
Starting with World magazine,
Over these months,
ERV launched a large number of projects.
Each one solidified ERV’s position to so extent and garnered capital favor that even Apple had not enjoyed. anwhile, Apple’s first-generation device could only be relegated to minor news.
Not only that,
When it rains, it pours.
The weak performance of the first-generation Apple device made Jobs uneasy as Qualcomm’s new Snapdragon processor was much better than the one developed in cooperation between the two, and many industry giants were ready to adopt it directly.
Apple was in a tough spot.
The performance gap in the chips was quite significant.
The first-generation device was even rated ’behind in performance’ by many dia outlets and experts, aning that hardware was evolving so rapidly their product was outdated before it even hit the market.
This hurt him and his team deeply.
"Expedite the research and developnt of the next-generation Apple device, abandon the original chip, and adopt Qualcomm’s existing Snapdragon processor right away. We can’t delay this; I’m feeling very uneasy," Jobs instructed his subordinates.
"Yes."
They also felt that at this mont, Apple shouldn’t be too persistent. If they waited for the next-generation chip to enter production, they would have to wait at least eight months or more, and it was unpredictable what could happen by then.
They couldn’t afford to wait.
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