Chapter 105

Tiansheng Capital's decision to pursue a backdoor listing meant that there would be no traditional IPO. Instead, the company would raise funds by issuing new shares to specific institutions, effectively bypassing retail investors.

As word spread about Tiansheng Capital's backdoor listing plans, numerous big institutions, including Chaoyun Trust and Wanxiang Group, hurriedly sought to secure a share of the planned increase. The interest from these institutions was overwhelming, reflecting their eagerness to be part of this lucrative opportunity.

In a meeting with the executives, Lu Ming and Wang Yue revealed the details of the backdoor listing plan. They explained that Tiansheng Capital had been valued at 240 billion, with a total share capital of 80 million shares. Additionally, they emphasized that approximately 35% of the shares would be floated, with 15 million shares available for subscription. This equated to a financing target of 45 billion yuan.

The scale of this fundraising venture was staggering, even by the standards of the Big A market. It was the second-largest capital raise in the country's history, trailing only the top position by a small margin. The executives were left astonished by the enormity of the figures presented.

Wang Yue raised concerns about the stock price, suggesting that 3,000 yuan per share might be too expensive. She was worried about liquidity in the secondary market. Lu Ming responded by stating that the price was carefully chosen to balance liquidity for retail investors. He admitted that he had considered pricing the shares at 5,000 yuan, but he needed to account for the well-being of ordinary investors.

Institutional investors, who were present during the discussion, inwardly agreed that they would raise the stock price above 5,000 yuan once it resumed trading, effectively excluding retail investors from the equation.

The negotiations among these institutions primarily consisted of initial agreements, serving as preliminary consensus agreements. Such agreements held significant weight in the financial world, often more so than formal contracts. It was unlikely for any party to backtrack on these agreements, as it could damage their reputation and credibility within the industry.

The Tiansheng Capital backdoor listing was slated for March of the following year, provided that everything proceeded smoothly. The financing cost associated with this backdoor listing was expected to be significantly lower than that of a traditional IPO, making it an attractive option.

As the institutional negotiations concluded, and preliminary agreements were reached, more than a dozen institutions were now part of Tiansheng Capital's financial journey. They were eager to be involved in this grand financial venture, and the prospect of the backdoor listing generated considerable excitement in the financial sector.

It's important to note that while traditional IPO fees ranged from 6% to 8% of the total funds raised, backdoor listing and refinancing fees typically ranged from 2% to 4% of the funds raised. Given the substantial sum Tiansheng Capital aimed to raise, these reduced fees translated into substantial savings.

As discussions and negotiations continued in the financial world, An Yirou entered Lu Ming's office, informing him that someone claiming to be his second uncle was requesting a meeting on an important matter. Lu Ming agreed to meet him but also instructed An Yirou to prepare 200,000 to 300,000 yuan in cash and arrange for a safe to be installed in his office to store a million yuan in cash.

The second uncle, whose existence had barely registered in Lu Ming's memory, arrived at the office. After an extended conversation that revolved around reminiscing about the past, Lu Ming tactfully steered the discussion towards the second uncle's predicament. It turned out that the second uncle needed financial assistance for his son's marriage and to construct a new house. Without hesitation, Lu Ming handed over a document containing cash, likely amounting to 200,000 to 300,000 yuan, enough to resolve the second uncle's immediate concerns.

With the second uncle's issues swiftly addressed, An Yirou, who had observed the interaction, commented on the man's clever approach in seeking assistance. Lu Ming concurred but pointed out that such strategies sometimes led to higher demands when the recipient of assistance discovered the extent of wealth within their family.

The incident with the second uncle was a minor episode for Lu Ming, easily resolved with financial means. He preferred to avoid prolonged involvement in such matters and considered the cost of hundreds of thousands to be a small price for the convenience it offered.

In the coming days, Lu Ming continued to focus on the backdoor listing plan for Tiansheng Capital, working diligently to ensure its success.