Is it really that undesirable for the two opinions I thought about? Page was a little angry.

"I reiterate that I support your approach, because auction pricing is more in the interests of our major shareholders,"

Feng Yiping simply did not copy the whitewashing statements of Peppa and others, and there was no need for outsiders to pretend.

"It's just that I think it's necessary for us to understand the many huge difficulties we will face in operation with such pricing,"

"Or, can we evaluate the advantages and disadvantages of the operation of it and listing in a normal way? If we can first understand the difficulties of auction pricing from our minds and do more preparations, then in actual operation, we will be more relaxed and the effect will be better, what do you think?"

I think very beautifully but do especially badly. This kind of mistake is not only made by ordinary people, but also these two geniuses of Google.

After Google insisted on using Dutch auctions to determine its iPo stock price, it immediately triggered Mafengwo.

The big guys and younger brothers on Wall Street immediately attacked everywhere, either personally speaking, or asking reporters and experts to publish articles, with the only purpose of belittle Google's move, and spreading remarks that stocks will immediately fall once they are listed and traded.

Moreover, these bankers are not just talking, not just shareholders, but they have done a lot of things themselves, but they are still very fatal actions: they have united many institutional investors and resisted subscribing to Google's stocks.

A combination of Wall Street is very effective.

Their actions have had a great impact on the retail investors that Google hopes to benefit during its listing process. In the eyes of many investors, Google's halo is dim or simply disappears. Many of them are not interested in buying Google's stocks.

Faced with such a large-scale and consistent slander, even the big guys on the Dune Road, such as Sequoia's Morez and KPCB's Dole, have come out to speak out several times, "This is malicious smear,"

However, in the minds of ordinary investors, it is more credible than venture capital banks. Moreover, there are only a few venture capital companies that have worked hard to support Google, but there are so many investment banks that are not optimistic about Google - don't expect retail investors to have their own opinions, of course, they are following the general trend.

That's fine, the key is that Google didn't know how to understand it, so it made many tricks. Maybe it still felt too good. In short, some of Google's actions seemed to be effective at that time, which was to provide Wall Street's attacks and assists.

For example, because they are worried that too many small and medium-sized investors will raise the stock price too high. After IPO, the stock price has limited room for growth, which will make these users who want to go public through Google and get satisfactory returns disappointed with the company. Therefore, they issued a "winner's curse" warning more than once and several times.

The main meaning of the winner's curse is that the value of the auction items is usually overestimated.

The general meaning is that our stocks are risky, so be cautious when buying! After listing and trading, the chance of rising is not high, and the possibility of falling is not small. So, if you buy our stocks and it really falls, don’t blame us!

Don’t say that you don’t expect anything!

When I read the information later, Feng Yiping couldn't figure out if he wanted to break his head. Which genius with a big brain made the decision?

The most classic assist is this! In the eyes of ordinary investors, this just strongly proves whether the decisions of Wall Street's investment banks are there?

Therefore, Google itself successfully dispelled the enthusiasm of many retail investors, and institutional investors resisted it. The final result was that the roadshow effect was very average and the market response was very cold.

Google finally realized the seriousness of the problem. Page, who rarely accepted interviews, stood up and accepted an interview with Playboy. It naturally contained a lot of private goods, such as our company performed very well, and our stocks performed very well. Subscriptions must be very good...and so on.

Google, which has always claimed to be unusual and always believed that it was not a traditional company, successfully caused a big trouble this time.

They successfully aroused the anger of key institutions, which was Sec who was so powerful that Jobs was afraid of. Sec immediately sent a letter to follow and inquire, "Why do you want to make such a statement during the silent period? Give me an explanation. If you don't give me an explanation, I will give you an explanation."

What explanation? Of course, it is an explanation of the reason why IPO is not approved.

Now, more people think that Google’s iPo is no longer sure!

Of course, Google's ability to solve problems is pretty good. After some effort, it finally soothes Sec's anger. However, they are very proud and only conduct roadshows in the United States. Not to mention Asia, they don't even go to Europe...

The result was that I originally wanted to issue stocks at a price of 108 to 135, but in the end I had to lower it to $85, with a maximum difference of $50, a shrinkage of nearly 40%!

The original plan was to raise US$3.3 billion, but in the end it was only US$1.67 billion...

Moreover, although the stock price rose only 18% on the first day of IPO, which seemed to be more reasonable, it rose 27% the next day. Within three months, Google's stock price quickly exceeded $200.

Therefore, Google's iPo pricing is actually a failure.

Originally, they had a good hand and almost lost the game. This may only be a genius.

If you hold these stocks for a long time, the issue price is 85 or 135 will not have a big impact. However, in iPo, if Feng Yiping wants to sell 5% of the shares, then the issue price is 85 or 135 will have a big impact.

He doesn't remember how much Google's total share capital is, but he only remembers that the market value after listing is more than 26 billion US dollars. In that case, the 5% he is about to sell is worth about 1.3 billion US dollars.

If it can be issued at the highest price of 135, then this part of my income will be close to 1.6 times the 1.3 billion US dollars, which will definitely exceed 2 billion.

Even if it is issued at a low price of $103, it will be more than 1.2 times, and it will eventually be more than 1.5 billion.

This is a gap of more than 200 million to 700 million US dollars, and it is not a small amount. How could Feng Yiping become optimistic?

So, he didn't care about Peppa's dissatisfaction now.

"We all know that the price of IPO is more than $100, which is a dividing line. If it is more than $100 or less, the difficulty will be very different. So, can we measure the possible results of these two methods again?"

"I think the most important basis for judging whether the listing is successful is whether it can bring us the most cash. Other retail investors are secondary. What do you think?"

Page and Bryn are always prone to swaying around key matters. For example, of course, they also hope that the higher the amount of cash out of the listing, the better, but they don’t want the world to think that this is their pursuit, so they have to cover up the fig leaf to give retail investors a fair investment opportunity.

The result is that retail investors do not want to buy, and their income also decreases significantly.

At this point, Feng Yiping still admired Zuckerberg from Facebook later, so he clearly said that what I pursued is high returns, so he also played auction-style pricing, but because of his clear goals, he played very successfully. On the first day of IPO, the stock price only rose by 0.6%!

But, so what? In the eyes of the general public, isn’t Facebook still a good company, a great company, a company worth investing in?

Feng Yiping has many plans and opportunities next year, and of course the higher the return on listing, the better.

"If investment banks are confident that our stock will be issued at a high price of more than $100, I think this is also an option to consider, what do you think?"

"Feng, we cannot just see the immediate interests. We hope that our listing will set an example for later companies and benefit more ordinary investors,"

It is indeed a role model, but it is a role model close to the opposite side.

"Page, I just want to remind you that some things are just accompaniment and are not the main purpose of iPo, what do you think?"

"It is best to let it return to its essence, and not to lose sight of the main and the final. If the main and the second, it is possible that none of our goals can be achieved," he said.

"I'm not against auction pricing. I just hope that at least a few of us can have a very clear understanding of the hard work of this road," he said.

"That is, you still agree with doing this?" Page asked.

"Of course, we will definitely maintain a high degree of consistency. I agree with and admire your persistence. I will fully support and cooperate with you to achieve such a goal,"

But it doesn't seem like that.

"Anne informed me that the meal is ready," Bryn interrupted their argument in time.

It turned out that it was already evening before we knew it.

"Let's have a meal first, and we'll continue to discuss tomorrow," (To be continued.)

:
Chapter completed!