Extraordinary Genius Chapter 748 – Losses

14.86 USD!
The opening share price was 48.6% more than the prices they set!
Kameda Masao was overjoyed, and Feng Yu was also astounded by this. Both had not expected the opening share price to be so much higher!
Of course. In another 2 days, there will be a company’s share that shoots up even higher. This company’s share prices increase by several folds on the day they got listed. It was a company dealing in web browser. The US currently has “Information Superhighway” plan, and all related companies’ share prices were rising rapidly. This includes Microsoft.
Information Superhighway plan is a highway linking the whole world through high-speed communications system. It was mainly made up of 4 parts. Fiber-optic cable, PC and servers, software, and massive information resources.
As long as the company was related to these 4 categories, the company’s share prices will rise from 1993. This was the time where Bill Gates become a billionaire!
In short, this was to build a global network. It was the US that started this project. Later, Clinton felt this was a good plan and will increase the US economy, productivity and most importantly, can spread “Democracy” to other parts of the world. This was to covert the people from different countries to have their mindsets and establish the US as the world leader!
The one who proposed this plan was promoted to the Vice President by Clinton, and this proposal was implemented. This was the start of the information age and lead to the rise of many companies in the related industries.
This also created the Dot-Com Bubble in the future.
For the next two years, all internet-based companies’ opening share prices when they were listed were much higher than the rates they set. Of course, these companies’ shares also plummet during the Dot-Com crash.
But the Sixth Sense Company had nothing to do with the Internet, Communications, and Technology, and their share prices shot up by 48.6% when the market open. This was too shocking!
Last month, some companies were listed, and their opening share prices were lower than the prices they set. Compared to those companies, investors were more confident in the Sixth Sense Company.
Kameda Masao was only thinking about how much money the company had made. The higher the market value of the company, the more he and the company will earn.
From the opening price, the Sixth Sense Company share prices will be doubled within the month, and by year-end, it might be several times higher.
Kameda Masao also owns the company’s shares. This sudden increase in the company’s share prices, his net-worth had also increased by several folds. He had officially become a millionaire with more than 200 million USD net worth. He was also managing a company that’s worth more than 2 billion. The world’s number one sex toy company!
After this listing, Kameda Masao will have the funds to set up new factories, retail shops, and marketing.
Kameda Masao will soon become the world’s most famous sex toy magnate. Now, he also has the fund to invest in adult magazines, movies and even set up an adult channel. He had always wanted to enter these related industries to increase the company’s profits!
Kameda Masao was eager to share his joy, and the first person he had in mind was Feng Yu.
Compared to Kameda Masao and the other employees of the Sixth Sense Company joys, Feng Yu was frowning.
Feng Yu could feel his heart aching. It was because he had suffered losses. Big losses!
The opening share prices were so high, and the shares were still rising. Why does Feng Yu felt he had suffered losses?
Feng Yu was now regretting. He had not made enough preparations for this listing. He did not know that the Sixth Sense Company would be so popular with the investors.
If Feng Yu knew this would happen, he would have set his share prices higher. Even if he set the share prices at 15 USD, he would also be able to sell them off.
Both Feng Yu and Kameda Masao had consulted some financial professionals, and they concluded that their share prices should be set at 8 to 9 USD. If Feng Yu did not insist, the share prices they set would definitely be less than 10 USD.
But Feng Yu never expect the opening share price to be so high!
Even if they sold their shares at 10 USD, Feng Yu would also not issue so many shares. He should have issue 25% shares. Why did he issue 30%?
Although the Sixth Sense Company had taken lots of loans to set up branch companies and factories in the US and Europe, the company’s debts were nothing.
Even with high debts, the Sixth Sense Company can split their shares and sell them to the public twice. After the initial sales of their shares, they would know the prices and then issue the remaining shares at a higher rate. They would be able to raise more funds this way.
Many companies had done this in the past. They did not issue a lot of shares during their IPO. They waited until the share prices had gone up, and they issued more shares to the public for the second and third time. They used the excuse of needing more funds. Every time they release shares, the principal shareholders will be given the choice of purchasing the shares at a lower rate. This was equivalent to giving them some bonuses.
This way of issuing shares will accumulate more funds than issuing all shares at once. But now, this difference had been taken away by the investors. This was why Feng Yu felt he had suffered a loss!
In his previous life, Feng Yu did not follow any companies that had used this strategy and had made this mistake.
To many people, what Feng Yu did might not be considered a mistake. But to Feng Yu, this was a grave mistake as he had let others made more money from him!
“Manager Feng, our Sixth Sense Company’s shares are rising, and our opening share price is much higher than we expected. Why are you still unhappy?” Kameda Masao was puzzled. Everyone from the company was excited, but Feng Yu was frowning. Something was not right.
The commissions given to the market makers were very low, and the market makers were still able to sell off all of their shares. After deducting their cost, the Sixth Sense Company still made quite a sum.
No matter how Kameda Masao looks at it, this listing was successful. The company will have better development and they would able to clinch deals easily after this listing. Why was Manager Feng still frowning?
Feng Yu was mumbling to himself, calculating his losses. When Kameda Masao asked him, he raised his head and said: “If we had issued lesser shares now and set the prices higher, how much more will we get?”
Feng Yu was unhappy, and he does not want to see others feeling better than him!
After hearing what Feng Yu said, Kameda Masao was no longer excited. They had suffered heavy losses in this listing…...