2003: Starting with Foreign Trade

Chapter 561 Shorting Yourself?

Are you two nervous?

Looking at the rapidly changing numbers, Zhang Xupeng asked curiously.

"There's some truth to it. Every little movement affects our net worth quite a bit, but it seems like the market is doing well right now. I wish it would skyrocket."

The main reason is that it's cheap.

Orange Technology's final IPO price was $9 million, just double the amount from its last round of financing. This price is quite reasonable for an internet company in a capitalist bubble.

With a valuation of 10 billion, the plan leaves ample room for speculation in the secondary market, which is why the stock price performed well in pre-market trading.

"Is your family's overall shareholding really 32.66%?" Zhang Xupeng asked with some curiosity.

"It's all written in the prospectus. It's all transparent. There's nothing to be fooled about."

However, the actual shareholding ratio controlled by Tan Jincheng is definitely not that small. For example, Zhang Xupeng holds shares, and some people in Beilun also hold shares in him in secret. They definitely support him, and the voting rights of the employees holding shares are also in his hands.

"Hehe, it's gone up again, but it's green, which looks really annoying."

Zhang Xupeng was overjoyed, as if it were the listing of a company he held shares in. Orange Technology, with an issue price of $10, has now reached a share price of $13.17, and trading is very active.

Domestically, there was also jubilation. Cheers erupted continuously in Orange Technology's office area as the stock price rose. The first-day stock price increase made their news much easier to write, and they could just keep bragging about it.

Furthermore, the rise in stock price benefits every employee. Orange Technology is currently the only listed company in China and even the world where all employees hold shares. Even 200 shares make you a shareholder, so it shouldn't be underestimated.

"Boss is awesome! Charge! Charge!"

"I wonder if it can rise to $20. There are no limits on the rise and fall in the US. Awesome! My stocks in the A-share market have lost a lot of money. The boss is really awesome."

"What are you guys getting so excited about? If you make it to the top, are you going to sell it?"

Whether it will sell or not is another matter, but it's awesome.

The atmosphere at the scene was just as enthusiastic as it was in China. Tan Jincheng and his entourage would be staying here all day, and there would be a closing bell ceremony after the market closed. Everyone was happy when the stock price went up.

Of course, there is definitely a market-making element involved. Wall Street is dominated by institutions. Stocks like Orange Technology, which are listed on their first day, are entirely dependent on the whims of these institutions. If they sell off in large quantities and there are no buyers, the stock price will definitely not be able to hold up.

"Hey, do you want to sell some? The price has gone up quite alarmingly. It's risen by more than 30 points in just a short while. It's much more profitable than what we make in business," Zhang Xupeng asked Tan Jincheng quietly.

After half an hour of trading, the stock price has stabilized and is currently fluctuating between $13 and $13.5. Judging from the chart, there are not many sell orders yet.

However, this price was enough to push Orange Technology's market value to over 8 billion yuan, less than 2 billion yuan away from the 10 billion yuan mark. In just half an hour, the Tan Jincheng family's net worth increased by more than 600 million yuan.

"Don't rush. No founder sells everything on day one. If you want to sell, go ahead. You've already made a million."

Tan Jincheng does want to sell. He's sure he'll be fine shorting in the short term. The price will definitely drop in a few months anyway. He doesn't need to care about the stock price. Today's increase is definitely worth shorting.

However, as the founder, he certainly can't sell his shares on the first day of the IPO, as that would be a real negative for the stock. He has to wait a while before doing anything about it.

"Holy crap, are you really planning to sell?"

Zhang Xupeng glanced at Tan Jincheng in surprise. He had only casually remarked on the rapid rise in stock price, but Tan Jincheng did not deny it, which greatly surprised Zhang Xupeng.

"If the price goes too high, we can reduce it a bit, right? I'm short of money to manufacture cars, aren't I?"

Reducing one's own shareholding is not ideal, but reducing the shareholdings of one's parents and Gu Qingqing is acceptable. On the surface, Tan Jincheng holds 27.71% of the shares, and Gu Qingqing holds 4.25%. In principle, even if Gu Qingqing's shares were all sold off today, there would be no need for an announcement.

Tan Jincheng's shareholding and control over employee shareholding are insufficient to affect the company's actual control.

After the shareholding was finalized, Tan Jincheng had already discussed with Gu Qingqing that once she officially stepped down from the position of CEO, he would reduce his holdings by at least 3%.

In addition, Tan Jincheng also plans to sell the shares belonging to his parents and Tan Jinyue, which should be enough to cash out several hundred million yuan.

A few hundred million dollars is nothing on Wall Street, but it can be very useful in China; you can easily use it to create a company like Yangzi Automobile.

Zhang Xupeng looked at Tan Jincheng suspiciously: "Hehe, what do you mean when foreigners sell stocks? They're shorting them, right? So you're planning to short yourself, you rascal. But I'm not selling mine. I'll just keep it as a souvenir."

The two of them got more and more excited as they talked, so Gu Qingqing quickly interrupted them, saying, "You two be careful, there are quite a few people here, including many reporters. Domestic reporters can understand what you're saying."

Although they weren't speaking loudly and the scene was quite noisy, they were still worried that someone might deduce something from their lip movements. "Yes, let's not talk about this. If any domestic reporters interview you later, be careful. There should be quite a few people who know you, but don't mention Jinpeng Industry. Just say you're here to support me."

There are quite a few domestic journalists here today. Most of the domestic media outlets with offices in Wall Street and New York are quite influential, and their reports will definitely be positive. But if you put your words in their hands, they certainly won't let you off the hook.

These days, the domestic media and industry peers are quite united. Listing on NASDAQ is considered a source of national pride. As long as Orange Technology's stock performance isn't particularly bad, the focus is on praising it.

"Okay, I got it. I can't control my mouth when I'm with Xiao Tan. I guess I'll have to be more careful in the future." Zhang Xupeng nodded.

Tan Jincheng also felt this way. He felt particularly relaxed when he was with Zhang Xupeng, a relaxation that was different from when he was with Gu Qingqing or even his parents.

For Tan Jincheng, he had gone to sea with Zhang Xupeng twice, for a total of three years. The emotions accumulated from sharing joys and sorrows in the two lifetimes were different.

The lunch was takeout, but it was anything but low-end. The work team consisted of over 30 people, plus the domestic and international reporters who were still there. All of this was paid for out of Tan Jin's own pocket, whose net worth has skyrocketed today.

"This is outrageous! Ordering takeout in this crappy place is so expensive, it's way more expensive than at the outlet mall headquarters."

"Of course, a fast food meal cost almost 35,000 yuan, haha."

It wasn't that he was worried about the money; it was that Tan Jincheng remembered how the two of them had sold boxed lunches in their previous life. These boxed lunches, costing 35,000 yuan each, were practically impossible to sell without breaking the bank.

During lunch break, several domestic media outlets conducted a brief interview with Tan Jincheng and Gu Qingqing.

"Wouldn't I be happy if my net worth increased significantly? Of course I would be happy. I said this in a previous face-to-face interview: my initial goal in starting my business was to make money. Now that I have a company that has gone public, how could I not be happy?"

"Mr. Gu, not counting the previous cash-out amount, your 300 million yuan investment in Orange Technology has now yielded a return of over 110 times. What are your thoughts on this?"

"Thoughts? Haha, in the words of my Jin Yue, I dare not think about it; I never dare to think about it, it's all like a dream."

"Is there anything you'd like to say?"

Gu Qingqing glanced at Tan Jincheng: "If I had to say something, it would be to thank fate; and of course, I would also like to thank my father, who gave me the 300 million yuan."

A deep, affectionate glance was quickly captured by a sharp-eyed photographer and became the cover of this joint interview.

The stock price fluctuated little after rising in the morning, but in the afternoon trading session, the stock price of Orange Technology fluctuated much more dramatically, as some institutions chose to sell off their shares today.

Each institution has a different investment style, just like some stock investors are long-term investors and some are short-term investors. During the fundraising period, some institutions only intend to make a quick profit and leave. This is simply due to their investment style.

During trading, Orange Technology's stock price once rose to $14.99, with its market value approaching the 95 billion yuan mark, prompting Zhang Xupeng to repeatedly exclaim "Holy crap!" He had never really paid much attention to stocks before.

However, it was quickly brought down, but there were also many large orders to take over, which shows that there are also many institutions that are optimistic about Orange Technology.

"Damn, it surged so hard on the first day, it makes me want to short it."

Looking at the wildly fluctuating trend, Tan Jincheng couldn't help but complain. This kind of market with no limits on price increases and decreases is indeed exciting. You can become rich overnight or go bankrupt in a day.

At today's closing bell, Orange Technology's stock price settled at $14.50, prompting cheers from the staff remaining at the stock exchange.

Tan Jincheng and Gu Qingqing cheered along with the crowd, unable to hide their excitement.

On the day of its listing, the stock price rose by 45%, with a market value of US$13.05 billion. Based on today's exchange rate, Orange Technology is valued at RMB 91.35 billion. The domestic reporters present at the scene also looked proud.

"On the first day of its listing, Orange Technology's market value exceeded 90 billion yuan, and the value of the shares held by the Tan Jincheng family approached 30 billion yuan!"

"On its second anniversary, Orange Technology, which holds the record for the fastest IPO in China and on Nasdaq this year, delivered a satisfactory performance on its first day of trading on the secondary market."

"The world's only internet company with all employees holding shares saw its stock price surge by 45% on its first day of trading, with employee shareholdings valued at a minimum of 2 RMB!"

"After joining Orange Technology for two years, Cheng Hao, a veteran of the internet industry who had been frustrated with his career, saw his net worth skyrocket by 1.86 million yuan!"

Back at the hotel, Tan Jincheng scrolled through the headlines of domestic media, and couldn't help but laugh when he saw the last one: "Could this have been bought by Lao Cheng?"

"Stop joking around. Let me ask you this: when are you planning to short yourself?"

During the day, Zhang Xupeng joked about shorting his own stock, which Gu Qingqing remembered. Judging from her family's attitude, they still wanted to establish a luxury car brand in the US and bring it back, so they seemed a little impatient.

(End of this chapter)