Extraordinary Genius

Feng Yu was pleased to know that CCTV had free up 6 advertising slots from this incident. One of the slots was still a primetime slot. Because Feng Yu was taking over these slots in the middle of the year, Chief Jia was willing to offer him a discount if he were to buy up all the 6 slots. Feng Yu made some calculations and found that these slots were less than half of what was paid at the start of the year. Chief Jia also hinted to Feng Yu that it might be close bidding system for next year’s advertising slots auctions and he will make sure that Feng Yu would be able to win more bids. The can also help Feng Yu do film an exclusive episode on the company he picked.

Old Jia was a good man!

There were finally enough advertising slots for Feng Yu to use. Feng Yu had thought of advertising on Radio stations because of the insufficient advertising slots on CCTV. Now, he does not need to do that. After leaving CCTV, Feng Yu went straight to the airport. Kameda Masao had come to Beijing.

“Boss, thank you for receiving me at the airport. Actually, I can call a taxi myself, and you do not need to come.” Kameda Masao was touched by Feng Yu.

In Japan, there was a clear line between superior and subordinates. Only superiors can order subordinates around. Acting as an equal? The boss will not be viewed as a good leader!

“That’s enough. Stop bowing. Are you afraid that everyone does not know you are Japanese? Hurry up and get into the car. We still have many things to do.” Feng Yu chided.

On the way, Kameda Masao was telling Feng Yu the current status of the Sixth Sense Company. The Company was doing well and had achieved its initial goals. Kameda Masao was thinking of getting this company listed!

Tokyo was the world’s second-biggest financial hub. The Sixth Sense Company’s profits had increased by several folds in the past two years. This company might become the world’s largest sex toys company shortly. There was no way it could not be listed.

After the company was listed, the value of the shares will increase, and the dividends taxes will also increase. But if it were shares allotment, they would be able to be exempted from the high taxes.

Kameda Masao also wanted to give some shares to his fellow colleagues who had worked with him from the start as a form of encouragement. Before the company was listed, the employees can purchase some of the shares at lower prices. The prices of the shares will be much lower than the market rate. This can be considered as employees’ benefits and had been used by many big companies.

Kameda Masao had spoken to Feng Yu over the phone about this. Feng Yu was fine with this idea, but he felt that the company should not be listed in Japan. Japan’s stock market had not recovered from the recession, and even if the company was listed in Japan, there would not be much profits. This was because the Japanese do not have any spare cash now. How would the share prices rise?

Feng Yu was thinking of getting the company to be listed in the US to earn money from the Americans. The Americans were wealthy now, and their stock market was still bullish. Also, there was no sex toys company listed in the US, and this will be a good thing for the Sixth Sense Company.

All Feng Yu needs to do was to control the number of shares issued, and he would still be owning more than 50% of the company’s shares. He will still be the major shareholder and have the biggest authority in the company.

But after the company was listed, Feng Yu will no longer be the controlling shareholder. He will no longer have the biggest say in the company. However, the ones holding the significant stakes in the company was still him and Kameda Masao. He was not worried about losing the company.

Feng Yu had not invested much into the Sixth Sense Company, and he had only invested for fun in the past. Now, he had recovered his initial investment and still made lots of profits. The company under the leadership of Kameda Masao was doing better than expected. If the company was listed, it would be a good thing for Feng Yu too.

Feng Yu would be able to free up some of his money to invest in other companies or take over some companies he was interested in.

At the hotel, Kameda Masao took out a stack of documents from his luggage. It was all written in Chinese, and he passed the documents to Feng Yu.

Feng Yu only looked at the variety of products, their sales figures, market shares in the different regions and profits.

“Kameda…. our sex dolls’ sales the world’s number one now?” Feng Yu’s eyes widen. Kameda Masao had already penetrated into the western market and was now the market leader there. Kameda Masao was really outstanding!

Kameda Masao felt proud for a while but immediately said with a humble tone: “Our company is able to achieve this result is all because of your leadership. Being able to work for you is the luckiest thing that had happened to me.”

Feng Yu looked at Kameda Masao. This Kameda Masao really know how to talk!

“Don’t say this. You are also a capable person to get this result.” Feng Yu also tried to be “humble”.

“If it was not your initial investment, the Sixth Sense Company would not have such results. Without your guidance, the company will not succeed. Without your support and trust, I will not be where I am today!”

“Fine, fine, fine. I know, I know….” Feng Yu laughed.

Even if Feng Yu’s initial investment did not yield any returns, he would also be satisfied because of Kameda Masao’s curry favor skills.

“Tell me your thoughts on the listing of the company.” Feng Yu patted Kameda Masao’s back to stop him from continuing his praises.

“Our company started in 1990, and there was nothing special in the first year. According to your requirements, our financial year is different from the rest of the Japanese companies. Our financial year ends in December, and to date, we have positive earnings records for more than 2 years. After the financial report for the third year is out, we will apply to be listed in the stock market. It should be easy for us to be listed. This is the reason why I want to start preparations now and get our company to be listed on the Tokyo Stock Exchange.”

Feng Yu shook his head: “Tokyo’s stock market is not a good place for our company to be listed. I think New York is a better place. Japan’s economy is still in recession, and even if we are listed there, we will not make much money. Most importantly, it will be our own employees who had bought the company’s share that will be at the losing end of this listing. Get the company to be listed in the US. The current US market is doing well, and we will surely profit within a short time once we are listed there. With our company’s profits over the past few years, our share prices will surely rise in the US market. It will be much faster than Japan. What do you think?”

“What you are saying is exactly the same as the consultant I hired. I am not an expert in the financial market, but luckily you are around. If not, our company will lose a big portion of profits!” Kameda Masao said.

“How many shares are you issuing for this listing?” Feng Yu asked.

“About 30%. Can we offer our employees 2.5% out of the 30% of the shares?” Kameda Masao asked carefully.

Actually, Kameda Masao wanted to issue more shares, but he knew that Feng Yu would never agree.

“It does not matter if you offer slightly more or less shares to the employees. Since you had already thought of this, then I will leave this to you. What will be the initial offering price?”

“10 USD per share. Is this fine?” Kameda Masao replied after doing some mental calculations.

“10 USD per share? Based on our company’s current scale and potential, this price is too conservative. 10 USD per share should be the price offered to our employees. The IPO price should be at least 20 USD per share! Do not think that this amount is overpriced. People can tell the earning potential of our company, and we are not scared that no one will buy our shares. I guarantee that our share prices will surely increase once we are listed! It should not be a problem for our share prices to increase 2 to 4 folds!” Feng Yu said confidently.

20 USD per share? Doesn’t this mean that the company’s value would be doubled once it was listed? The amount will increase by several folds after that? That means Kameda Masao will become a multi-millionaire? Two $$ sign appeared in Kameda Masao’s eyes.

Translator’s notes: It’s been a while since my finance module in school and I had forgotten almost everything about IPOs. By the way, I hated the finance module the most, followed by statistics. CAPM, Black-Scholes Model, etc. are all mumbo-jumbo to me. But surprisingly, I scored the highest for finance among all my modules in Uni. In case if you are wondering what CAPM is, you can refer to this link. Here is the link to Black–Scholes model.

What’s the subject you hated most in school?

For more information about IPOs, you can go to the link below.

https://en.wikipedia.org/wiki/Initial_public_offering

Link to CAPM

https://en.wikipedia.org/wiki/Capital_asset_pricing_model

Link to Black–Scholes model

https://en.wikipedia.org/wiki/Black%E2%80%93Scholes_model