Recast youth

Chapter 1674 Bustling, profit and loss
Lanshan Company has not yet been officially listed.

Now Ye Feng has two ways to transfer equity. The first is to directly sign an equity transfer agreement with Hu Zhi and Li Zhen's company, and then file it with the board of directors. However, the corresponding equity framework content of the prospectus must also be changed.

The second method is to entrust a securities company to transfer directly on the Nasdaq market after listing. As for Ye Feng's own transfer, it is a bit troublesome because there is a lock-up period after the US stock market is listed.

The lock-up period is also called the lock-up period. According to the contract between the company and insiders, it is generally 90 to 180 days after the company is listed. The reason for the lock-up period is to prevent the original shareholders (including retired employees) from immediately following the listing of the company. The reduction of holdings and cashing out caused the stock price to fluctuate sharply.

The lock-up period in the United States is a completely market-oriented behavior. It is the result of the game between companies and investment banks. It is also a necessary behavior for companies and investment banks to gain the trust of investors and increase valuations.

Although U.S. stock listings also have lock-up period provisions, U.S. laws and SEC regulations do not have lock-up period provisions. The U.S. lock-up period is the pre-IPO period. The agreement signed by the company with early investors and employees. Investment banks will also require new contracts to confirm such lock-up agreements.

The U.S. Securities Regulatory Commission stipulates that shareholders cannot cash out their stocks during the sales restriction period, and insiders cannot maximize their own interests by selling quickly.

In order to protect the interests of investors, the U.S. Securities Regulatory Commission stipulates that original shareholders are not allowed to sell their stocks and cash out on the secondary market within a certain period after listing, management equity incentives and mergers and acquisitions, that is, the lock-up period or the sales restriction period ( Restricted?Stock?Trade?Period), Nasdaq is 6 months. In addition, after the 6-month lock-up period, the amount of shares that shareholders can sell every three months cannot exceed 1% of the issued shares of the same type or the average within four weeks. Those with larger weekly trading volume must report to the China Securities Regulatory Commission in advance. There are special regulations for corporate executives, directors and other insiders of inside information. If the reduction of holdings is greater than 500 shares or the transaction volume is greater than 1 US dollars, they must report to the China Securities Regulatory Commission. Will report.

However, although after the lock-up period expires, the original shareholders can theoretically reduce their holdings and cash out, but generally speaking, they will not choose to quickly reduce their holdings and cash out.

Especially Ye Feng couldn't do this.

Because this involves a trust mechanism issue, if the founders of your company reduce and cash out a large amount of their holdings after the lock-up period, what will investors think?You will think that none of the founders believe in your own company, so why should we believe in you?Your very act of reducing your holdings and cashing out is a sign of bearishness for the company's long-term development.

Not only does this fail to maximize cash, it may also cause the stock price itself to fall.

So if Ye Feng really wants to transfer the shares to Hu Zhi and Li Zhen, it is best to use the first method. Transfer the shares to them before going public, but it is relatively troublesome to update some listing information.

But the good thing is that Hu Zhi and Li Zhenyao don't have many shares, only about 1100 million shares. Although this is a lot of shares, it is not a lot for Ye Feng, and it does not affect the equity structure of Lanshan Company itself.

In the final analysis, money is still touching.

Ye Feng shook his head. In today's more realistic and impetuous society, modern people vividly express these words: "Everything in the world is bustling for profit; the world is bustling, everything is for profit."

Everything is for profit.

However, this is also in line with the normal logic of society. If there is profit to be made, who wouldn’t want it? If you don’t want it, then there is something wrong with your brain.

Thinking of this, Ye Feng turned around, looked at Chen Huang, Hou Yao, and Zhou Yihang, and asked with a smile: "Do you three want to hold shares in Dianlanshan? If so, complete the procedures at once today." Once it’s done, I can change the prospectus or something else, otherwise it will be a bit troublesome after it goes public, and I personally won’t be able to reduce my shareholding in a short period of time.”

"I don't want it anymore. Just ask Hou Yao and Zhou Yihang."

Chen Huang shook his head.Zhou Yihang also shook his head: "I don't want it either."

"Me too."

Hou Yao imitated Zhang Fei's tone in The Romance of the Three Kingdoms and laughed.

Seeing that the three of them didn't want it, Ye Feng looked at them angrily and said, "I'm telling you the truth, are you being polite to me? It won't affect anything if I give you some shares."

"You're welcome."

Chen Huang smiled at Ye Feng and said, "I have money to invest in private equity funds, you know."

Of course Ye Feng understands.

Chen Huang was talking about the "Maple Leaf Fund" between himself, Sister Qi, and Yang Qingzhi. Although the "Maple Leaf Fund" is still a little behind Lanshan Company, its scale is no less than that of Lanshan Company. Already, the acquisition of the Hilton Hotel alone has mobilized a capital of 240 billion US dollars.

Chen Huang also thought very simply. A man must be satisfied. Under the management of Yang Qingzhi, "Maple Leaf Fund" has become a very outstanding private equity fund before it even started to compete. How many financial giants wanted to invest money to join the operation, but they didn't. Opportunity, it would be a bit unethical for me to covet the shares of Ye Feng Company now. I can't let myself get all the good things, right?

Moreover, Chen Huang could also tell in the past two days that although Ye Feng promised to transfer 1100 million shares to Li Zhen and Hu Zhi, Ye Feng was actually not very happy in his heart. He only agreed for the sake of Sister Qi. made this investment.

Seeing that Chen Huang really didn't want it, Ye Feng had no choice but to look at Zhou Yihang and Hou Yao. Ye Feng also thought about it. Wang Xin held 1875 million shares of Lanshan Company, accounting for 5% of the shares. Chen Xiao and Li Zhidong , Gao Xuan, Li Ping, and He Chongxin collectively account for 5% of the shares. The remaining company employees and retail investors also account for about 5% of the shares. In addition to Ye Feng's listing this time, he plans to issue 3750 million shares in personal circulation, accounting for 10% of the company’s shares.

Here is a shareholding ratio of about 25%.

In other words, after Ye Feng's company was listed this time, his personal shareholding in Lanshan Company was still 75%, far exceeding the absolute equity passing line of more than 50%.

Even if Hu Zhi and Li Zhen are given 3% of the shares now, Ye Feng will still have 72% of the shares, so even if he gives Chen Huang, Zhou Yihang, Hou Yao and others a few shares, it will not matter, and it will not affect his interest in the company. Absolute controlling interest in Lanshan Company.

The most important thing is that Ye Feng feels that Hu Zhi and Li Zhen, two outsiders, have given shares to themselves, so Chen Huang, Hou Yao, and Zhou Yihang are people who are relatively close to him, so they have to give them some, right?

As for making money or not.

Ye Feng knew that he must have made money, and the amount of money earned would not be small. Ye Feng did not want to wait for the company's market value to reach hundreds of billions of dollars, or even hundreds of billions of dollars. The people around him would regret it and say with annoyance, you originally held shares Even people who are unfamiliar with Hu Zhi and Li Zhen, we brothers, you don’t ask us, even if we don’t tell you, you have to persuade us.

(End of this chapter)