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Typically, one stock represents 100 shares, serving as a direct representation of an investor's rights.
Not only that, this paper is also stamped with the seal of the stock exchange. The pattern of the seal is exquisite and complex, demonstrating official authority and recognition.
At the same time, various anti-counterfeiting marks spread throughout the paper, either using special watermark technology or unique ink printing, ensure the authenticity and validity of each stock from the smallest details, making it a valuable asset that investors can hold with confidence.
Yesterday afternoon, after much deliberation, He Yuzhu decided to ask Li Yunzhen to buy 1000 shares of this type of stock on his behalf.
The current stock market trend is delicate, stock prices are at a relatively high level, and the risk factor has increased.
He Yuzhu has always been cautious in his actions. Considering both the safety of funds and the return on investment, he did not rashly invest too much money, but only instructed the company to purchase 1000 shares on his behalf.
It is important to note that stock trading has a specific process and delivery cannot be completed immediately after the purchase order is issued.
The stock market closes every afternoon. After completing a series of liquidation processes, the seller will officially deliver the stocks to the buyer in accordance with regulations. There is a certain time difference during this period.
However, the normal trading process is as follows: First, the seller follows established rules and delivers the shares they hold directly to the stock exchange through professional channels. This delivery process has strict operating regulations and timelines to ensure the accuracy and timeliness of the transaction.
After receiving the stock information from the stock exchange, the securities company will issue a check for the corresponding amount to the seller based on the current market price and a rigorous financial accounting process. This check not only represents the transaction funds but also serves as a crucial document in the entire transaction chain.
Next, the buyer carefully selects a reputable brokerage firm and issues a delivery order. The buyer is required to pay the brokerage firm the full amount, either at the pre-agreed price or the prevailing market price. This payment is also subject to strict regulatory oversight to ensure the security and compliance of fund flows.
Finally, after confirming receipt of the buyer's funds, the brokerage company will use professional procedures to withdraw the stocks specified by the buyer from the stock exchange and transfer the stocks to the buyer through a safe and efficient internal circulation mechanism, thus completing the entire stock trading process.
The purchaser must exercise due diligence and properly safeguard the purchased shares. If the purchaser decides to sell these shares in subsequent transactions, they must strictly adhere to securities trading procedures and deliver the physical shares intact to the brokerage firm they are working with.
As a professional trading agency, the brokerage firm will sell stocks on a compliant trading platform on behalf of the buyer based on the buyer's instructions and relying on its rich industry experience and professional operational skills.
Based on common transaction time limit regulations, under normal trading procedures, for stocks that completed the purchase process yesterday, the stock brokerage company will deliver them to the purchaser this morning in accordance with established procedures through reliable logistics channels or electronic delivery methods to ensure that the purchaser can receive them in time and further plan the stock holding or subsequent trading arrangements.
Currently, He Yuzhu has not purchased many shares; he can buy a maximum of 1000 shares per day.
The reason is that the company is relatively small and has limited stock circulation, which cannot support him to buy a large number of chips at one time.
The number of stocks available on the market is limited and there is often no demand for them.
To this end, He Yuzhu and Li Yunzhen had many long talks to discuss countermeasures.
In the end, they decided to take a different approach and let Li Yunzhen try to contact some shareholders of Yu Renshui Boat, especially those major shareholders who held a large number of shares, to see if they could bypass the cumbersome process of the secondary market and directly acquire some of the shares from them, so as to speed up the acquisition process and increase the shareholding ratio.
Before this, He Yuzhu was completely focused on expanding the restaurant's business and developing dishes. He had only heard a little about the undercurrents of competition in the hydrofoil industry and did not pay much attention to it.
Until yesterday, at a chance business gathering, he heard that Yu Ren Water Boat Company was in trouble due to a broken capital chain. He keenly grasped that this was an excellent business opportunity.
After thinking carefully for a whole night, He Yuzhu made up his mind to take over this company with great potential.
So, this morning, as soon as He Yuzhu finished dealing with the morning affairs of the restaurant, he couldn't wait to call Huo Yingdong.
When the call was connected, he said warmly and sincerely, "Mr. Huo, it's been a long time since we last met, and I miss you very much. I'd like to invite you to have afternoon tea and catch up this afternoon. Is that convenient for you?"
Huo Yingdong has been active in the business world for many years. Although he has not had frequent interactions with He Yuzhu, he knows that He Yuzhu is a generous person with a good business sense. Naturally, there is no reason to refuse such an invitation, and he readily agreed.
By the afternoon, warm sunlight slanted onto the streets.
He Yuzhu arrived at the teahouse they often went to in advance and stepped into the familiar old box. The interior decoration remained the same, with antique tables and chairs, and the curling sandalwood, all exuding a sense of leisure.
Not long after, Huo Yingdong also arrived on time. The two met, smiled at each other, shook hands warmly, and then sat down in the box. A negotiation around the acquisition plan was about to begin.
Entering the private room, you will find the quaint environment filled with the lingering aroma of tea.
They sat down one after another, and the waiter brought them steaming hot tea and laid out exquisite snacks one by one.
Huo Yingdong took a sip of tea, feeling the warm tea sliding down his throat, relieving some of the fatigue from the long journey.
After some seemingly casual greetings, chatting about the recent weather and interesting things in the city, Huo Yingdong raised his eyes with a bit of inquiry in his eyes, and finally asked, "What do you want to talk to me about?"
In the fierce competition in the capital market, many companies are trying their best to apply for listing, hoping to embark on the fast track of rapid development.
However, the approval process at the Hong Kong Association is like setting up numerous checkpoints, which makes the applying companies feel overwhelmed. There are very few companies that can successfully go public every year, and they can be counted on two hands, at most two or three.
Looking at the difficult road to listing, Huo Yingdong's burning desire to queue up for listing was like being poured with a basin of cold water and gradually extinguished.
He Yuzhu heard this and nodded thoughtfully, as if sorting out many complicated thoughts in his mind, and then slowly said:
"I've thought about it carefully for a long time. Rather than going through the long and uncertain listing process, it would be more convenient and efficient to directly acquire Yuren Water Boat Company."
He narrowed his eyes slightly, his gaze firm, like the twinkling and steady North Star in the night sky, revealing his full confidence in this bold decision.
Huo Yingdong, who was standing by, was obviously shocked by this sudden thought when he heard this. His originally calm face was instantly disturbed. He widened his eyes, as if he had seen something extremely incredible. With a strong sense of disbelief, he asked anxiously:
"Are you serious about acquiring that listed company? This isn't something you can just casually decide! The funds, connections, and market influence involved are all incredibly complex!"
He Yuzhu looked determined, nodded again, and explained seriously:
"I've consulted with industry veterans, and they've found that going public is incredibly difficult in today's market. Not only do companies have to go through a complex and tedious process, but they also have to endure an agonizing wait. From preparing the prospectus to navigating various financial audits and legal compliance reviews, every single detail requires meticulous attention."
Huo Yingdong narrowed his eyes slightly, a deeply touched expression appeared on his face, and then he echoed:
"Yes, I've previously delved into this area for business expansion purposes. To get listed, companies not only have to wait in a long, methodical queue for review, each step of the way being extremely fraught with risk, but they also have to fully meet the stringent requirements set by regulators. As far as I know, just last year, out of the vast number of applicants, only three companies ultimately made it through the hurdles and successfully listed. That probability is incredibly low."
He couldn't help but recall the sensational event that rocked the capital markets last June—Jardine Matheson's listing ceremony.
At the time, Jardine Matheson issued more than 90 new shares to investors at a price of HK$16 per share.
Once this news was released, it was like a stone thrown into a calm lake, causing a thousand waves.
As expected, the subscription phase was extremely popular, and the company successfully raised approximately 1.5 million yuan.
This is already an impressive performance, but what's even more astonishing is that their stock was oversubscribed by a staggering 56 times, like a bombshell that sent shockwaves through the market.
Such a frenzied subscription enthusiasm directly resulted in frozen funds amounting to as much as 8 million yuan, which is enough to demonstrate the market's optimism and enthusiasm for Jardine Matheson's prospects.
At this point, Huo Yingdong's eyes flashed with a subtle envy. He leaned forward slightly, and his tone unconsciously revealed his admiration for Jardine Matheson:
"Did you know? The day Jardine Matheson's stock went public, the entire financial market was in an uproar. On the first day of trading, the stock price soared, the trading floor was packed with people, and investors' enthusiasm reached its peak. When the closing bell rang, the stock price was firmly at 31.25 dollars. This number was like a bombshell, shocking the entire industry. It was almost double the subscription price! This meant that those investors who subscribed early had their assets double overnight. How could such an amazing increase not make people envious?"
He shook his head slightly, his expression full of emotion. He picked up the teacup on the table, took a sip, and said slowly:
"Jardine Matheson's stock price has recently soared like a rocket, reaching an astonishing speed. This phenomenon is undoubtedly a vivid reflection of the booming stock market last year. Looking back, it is no exaggeration to describe last year's stock market as 'overheated.' The total turnover for the year was like a wild horse, galloping all the way up and successfully breaking through the HK$14 billion mark, setting a record for the highest turnover since the 1950s and 60s. Such a prosperous scene was truly amazing."
Huo Yingdong's eyes suddenly widened, and were instantly filled with panic and disbelief. He looked as if he had heard the most absurd fairy tale.
He stared at He Yuzhu intently, his lips subconsciously opened slightly. There seemed to be thousands of words in his throat, but they were choked by an invisible force and he couldn't say a word for a long time.
Acquiring a listed company? This idea is absolutely crazy!
In his understanding formed from years of immersion in the financial field, that was the top-level operation at the top of the pyramid, involving huge amounts of funds of hundreds of millions or even billions, a complex and intricate equity structure, and a legal process that was as cumbersome as a maze. It was definitely not something that ordinary people could achieve with just enthusiasm.
Chapter 690 Want to Acquire a Listed Company
He was completely taken aback that He Yuzhu would casually come up with such a bold idea at this moment, and he felt like he was struck by lightning.
However, what surprised Huo Yingdong even more was that He Yuzhu revealed the entire plan without reservation or hesitation.
He looked calm, sitting there with a relaxed posture, without any hesitation in his words, and his tone was firm, as if he was narrating a commonplace matter.
If it were any other business rival who was meticulous and cautious, He Yuzhu would definitely keep his mouth shut, hiding every detail of the plan deep in his heart, and would never reveal a single detail easily.
After all, in this ever-changing and highly competitive business world, the market situation is like the weather in June, changing at any time, and various forces are constantly competing.
Once such commercial secrets are accidentally leaked, it is like a ship that has lost its anchor in a storm. The ship can only be at the mercy of the wind and waves, and is very likely to be caught in the raging waves and swallowed by the surging waves in an instant, bringing the ship immeasurable and even fatal troubles.
He Yuzhu and Huo Yingdong have known each other for many years. Their friendship transcends the age gap, like a clear spring, flowing in the long river of time, and gradually develops into an enviable friendship regardless of age.
Over the years, whether they were toasting together to celebrate good times or weathering the storm side by side in adversity, the two have always supported and trusted each other.
This trust is like a solid rock. After countless storms, it has not only remained unshaken, but has become even deeper.
In He Yuzhu's heart, Huo Yingdong is not only an elder with rich experience and worthy of respect, but also a close friend with whom he can have heart-to-heart talks in the quiet of the night and share his inner joys, sorrows, and anger.
Therefore, when He Yuzhu was planning a new plan, he had almost no hesitation in his heart.
He knew very well that telling Huo Yingdong about the plan was not a rash move. Sharing the plan with his best friend was a natural thing to do on the solid bridge built by this deep friendship.
He Yuzhu then explained in detail: "Yu Ren Airship Company's shareholding structure is extremely dispersed, resembling a complex picture of multiple warlords vying for power. Although Williams' Yu Ren Group is the largest shareholder, it only holds less than 30% of the shares. This crucial information clearly indicates that there is no absolute controlling party within the company, and the situation is relatively loose, like a plate of loose sand. Precisely because of this, in this seemingly chaotic and thorny jungle of shareholding, we have every opportunity and means to start from the open market, carefully plan, like skillfully placing pieces in a complex game of chess, and gradually absorb enough shares through a series of reasonable, legal, and interconnected acquisition operations."
"As long as the strategy is appropriate and the execution is strong, it is not a fantasy to achieve controlling stake in this company. This will open up a whole new world for our subsequent business planning." The investment advisor's words were loud and clear, echoing in the spacious conference room.
When Huo Yingdong heard this, his originally calm expression changed slightly, and then he frowned slightly and fell into a brief and solemn contemplation.
His eyes subconsciously wandered around the room, from the large financial map of Hong Kong hanging on the wall to the exquisite sailboat model on the desk. None of the familiar objects could pull his thoughts away from the complex business calculations.
In his mind, the ups and downs of past business experiences kept replaying like a kaleidoscope.
In the turbulent financial world of Hong Kong, listed companies are like a few stars in a vast universe, totaling less than 50. Each of them occupies an unshakeable position in its respective field by virtue of its unique resources, connections, and business strategies.
Previously, the capital operations he was familiar with and experienced all followed traditional paths. They always followed a routine approach, first contacting the major shareholder, then, through carefully planned, earnest, and strategic negotiations, gradually completing the share transfer process and thus naturally acquiring control of the company.
But times are different now. The target company is in a special situation this time, and it remains to be seen whether traditional methods will work.
In the field of commercial acquisitions, the conventional practice is often to proceed step by step, through long and complex negotiations with the management and major shareholders of the target company, gradually reach an acquisition intention and complete the equity transaction.
This method is safe but also conventional, like a train running on a predetermined track, smooth but lacking in surprises.
In this calm industry practice, no one has ever taken a radical approach and tried to directly acquire stocks in a turbulent and unpredictable market, launching an unexpected hostile takeover.
This bold and novel idea was like a ray of strong light, instantly penetrating the inherent barriers in his thinking, the barriers wrapped in traditional concepts and experience, forcing him to admit that he had indeed never taken this unique perspective into consideration before.
Huo Yingdong has been in the business world for many years and is accustomed to dealing with and competing under the established rules. When he was suddenly faced with the new ideas proposed by He Yuzhu, he was shocked and confused.
However, Huo Yingdong did not make a hasty decision. He knew very well that business decisions could not tolerate any impulsiveness or recklessness.
He locked himself in the study, facing the table full of information and data, like a general about to go to war studying a battle map.
Some of those densely packed documents record the target company's financial status, some are market trend analysis, and some are dynamic intelligence on competitors.
He repeatedly deduced the acquisition plan proposed by He Yuzhu, not missing any details.