Reborn Entrepreneurial Giant.

Chapter 145 Jumei goes public

Just as the Jumei team launched its IPO roadshow and embarked on its journey to Wall Street, a wide range of abnormal natural phenomena such as low temperatures, rain, snow, and ice occurred in southern China. The southern provinces, which had not been prepared at all, suffered huge losses as a result.

At this time, Qu Li had forgotten that there was such a thing, and naturally he would not prepare in advance. The employees who stayed in the country did not realize that the crisis was coming, let alone be prepared.

Jumei’s road show in Xiangjiang started smoothly. Investors here can more easily understand Jumei’s model. For example, Li & Fung Group in Xiangjiang is doing similar things. They have the largest procurement and production network in the world and have provided services for Coca-Cola and Disney. Well-known brands and retailers like Walmart provide global supply chain management.

For example, Wal-Mart wants to sell its own brand Huiyi clothes. In the past when there was no Internet and information was not so smooth, Wal-Mart would not have been able to find a foundry in China on its own, so it would entrust the matter to Li & Fung, from raw material suppliers. From foundries to even transportation, Li & Fung Group can help Wal-Mart handle it all.

What Jumei does is to create its own brand, find raw material suppliers and OEMs by itself, and organize its own logistics and transportation.This is a major trend in the future. After the subprime mortgage crisis, a large number of domestic factories either passively or actively accepted informatization. Wal-Mart took the opportunity to abandon Li & Fung and find its own foundries to reduce costs and increase profits.

This was also explained in Jumei’s launch promotion. Riyue Fenghua’s self-operated brands will involve high, high, and low grades. In the future, they will not be limited to clothing and cosmetics, but may also include food, toys, and daily necessities...

To put it bluntly, it means building a self-operated supermarket and selling self-operated products. Everyone knows that self-operated brands represent profit guarantee. This can be seen from the fact that Jumei's transaction volume soared in 2007 but it was able to achieve profitability. It didn't work in 2008. The number of employees increased sharply, operating costs increased sharply, and it was very difficult to maintain profitability. Unfortunately, he would not tell investors.

The Jumei model is very new, but the essence is still easy to understand through the phenomenon. The road show is to let investors "understand" Jumei's underlying development logic, including investment in logistics, all to reduce overall costs.

The most difficult thing to explain is Jumei’s Chinese background, but Shopee’s revenue obviously has a tendency to exceed that of China. This is easier for Xiangjiang investors to understand. It will build a mature supply chain management system in China and use low cost and high profits to impact North America. market.

To put it simply, China is the production base, North America and Europe are the sales markets, making money in the European and American markets, and sharing profits on Wall Street.As Qu Li said, it is conservatively estimated that Jumei’s market value will exceed US$5 billion in five years without any problem. It will be a challenge to exceed US$100 billion in five years. But for current investors, as long as Jumei’s market value exceeds US$5 billion, US dollars are enough.

Lehman Brothers reported that the Hong Kong roadshow was very effective.Ali Xiangjiang went public, and its stock price increased nearly three times from its issuance price. Jumei emerged on Taobao, and many investors have investigated Jumei because of Ali.

When you come to New York, investors here may be more familiar with Shopee, which was founded only half a year ago. However, Lehman, Goldman Sachs, and HSBC collected about 5% of the issuance fees for this issuance, and they have to show their value no matter what.As a result, major mainstream financial media watched Jumei in a prominent position. The founder and business model of this company are refreshing.

Because of the success of Glory, no one doubts Qu Li's ability, and because of the success of Coconut Shoes, no one doubts the ability of the Jumei team.Although the combination of the two seems outrageous, investors rely on rational analysis of the problem and feel that they can only put it aside.

However, there are many difficulties in convincing Wall Street that Jumei is an excellent company, especially since China's textile export quotas to the United States are heavily restricted. Jumei must either apply for a temporary quota or purchase quotas from other companies, which is a huge expense.However, the quota system is valid until the end of 2008, so there is some risk in 2008.

Various tricky issues arise one after another, including the founder's marital problems, and I don't know how Dangdang got listed. Tudou.com, let's not talk about Tudou.com, scumbags are not allowed to own the house.

However, both Qu Li and Chen Danlin can speak relatively "fluent" English at this time, and the founder's ability is at least high.Chen Danlin still had some stage fright, while Qu Li was immune to too many attacks and remained calm in the face of all kinds of doubts and taunts.After finishing the matter, he went to Lehman Brothers to vent: "You are just riding the horse and doing nothing. Is it normal for this level of questioning to appear on the road show? Just taking money and not doing anything?"

Then, there was nothing more. The person in charge of the Quli project at Lehman invited Andrew to comfort him and arrange for employees to control the site.Sequoia Shen Nanpeng also mobilized his influence in the United States to boast about Jumei’s business model.

In just fifteen days, the schedule was tight and the pressure was so great that Chen Danlin was unwilling to do anything at night while Qu Li was tossing her around. Don't men and women have different ways of venting their anger?

Finally, on January 2008, 1, the Jumei team, which had gone through hardships, rang the bell. Qu Li and others stood in the Nasdaq hall and waited. Reporters from Zhalang and NetEase and several financial media from Wall Street followed. Take photos to witness this historical moment.

Jumei's listing code is jume, and the issue price is set at 17.5. Within Lehman Brothers' prediction range, the subscription situation is better than Qu Li imagined, and there is no risk of failure. However, the oversubscription is less than 10 times, which is far less than Ali's 200 last year. multiple times.

The bell rang, photos were taken, Nasdaq opened, Jumei's stock price jumped, the opening price exceeded 18 US dollars, long and short competition was fierce, and the turnover rate was high.

"Let's go back to the hotel and wait for the news." Qu Li knew that the pressure was relieved after successfully listing. As for short-term fluctuations in the stock price, or even falling below the issue price, he could accept it.

"Okay!" Chen Danlin responded. Many senior executives were unwilling to stay at the scene to watch the market and went back to the hotel to rest.

Jumei issued 2500 million new shares this time, bringing the total share capital to 1.85 million, with an issue price of 17.5. The company's market value is approximately US$32 billion. After deducting various expenses, the funds raised this time are approximately US$4 million.

The allocation and use of funds is a troublesome matter. In principle, as much as possible should be converted into soft currency to avoid exchange losses, but the development of shopee must be taken into consideration.The company's CFO Wang Yunliang is responsible for these matters. Although he has no experience, he is willing to learn and is a more diligent workaholic than Qu Li.

Jumei's senior executives, including the logistics director with a high school degree, are constantly learning. In addition to the practical needs of the company's development, the motivation for learning is also the stimulation of huge wealth.In this listing, those who receive equity incentives will have a lock-in period of several years, but wealth on paper is also money. Don’t you feel happy about it?

Lin Bing holds 1200 million shares, accounting for 6.5% of the company's shares, and has a net worth of US$2.1 million (I suddenly feel that this allocation is too small, not enough to attract talents like Lin Bing. How about sacrificing Chen Danlin's interests and letting Lin Bing hold shares The ratio increased to 1600 million, and Chen Danlin dropped from 1680 million to 1400 million. Both of them have a small amount of equity incentive shares)

At the close of U.S. stocks on January 1, Jumei’s share price rose to 10, an increase of about 19.5%.

After the adjustment, Lin Bing's shareholding ratio in Jumei increased to 8.6%, with a net worth of US$3.12 million, while Chen Danlin held approximately 7.6% of the shares, with a net worth of US$2.73 million.Excluding the 500 million shares in the equity incentive plan, Qu Li holds 7500 million shares. His shareholding ratio in Jumei is 40%, and his net worth has soared to US$14.6 billion.

An orphan who graduated from junior high school built a business worth tens of billions in three years. This is a great miracle. Many media at home and abroad reported this financial gossip.

Sequoia Shen Nanpeng, IDG Xiong Ge and others invested in Quli, and the return exceeded 30 times in two years, becoming a classic case of domestic venture capital.

This is a capital feast that is far from over.