Nongfu Spring Listing Road: Uncover the truth behind high Light financing
Zhong Shan, founder of Nongfu Spring, ranked third on The Forbes China rich List with a net worth of 359.65 billion yuan.Nongfu Spring has been the no. 2 richest man in the Hong Kong Stock Exchange for just half an hour.Nongfu Spring shares surged again, with a total market capitalization of more than HK $500 billion.China’s richest man and the 17th richest man in the world has been beaten by China’s Jack Ma and Ma Huateng.In 2020-12-31, China’s wealth has risen by 70.9 billion dollars in these standards, surpassing Mukesh Ambani, chairman of India’s Reliance Industries, to become Asia’s richest in the index.Chairman Zhong ≈ Ma Huateng (worth about $56.1 billion)+ Liu Qiangdong (worth about $21.9 billion)+ Wang Jianlin (worth about $14.5 billion)What is behind the farmer’s highlight?Zhong’s wealth is largely dependent on Nongfu Spring, which listed on the Hong Kong Stock Exchange in September 2020, and Wantai Biopharmaceutical, which listed on A-shares in April 2020.Nongfu Spring’s shares have jumped 155 per cent since listing, while Wantai pharmaceutical has surged more than 2, 000%.Their boss, Zhong Shanshan, has seen his wealth soar to $92.5 billion, pushing him past billionaire Warren Buffett to become the world’s sixth richest man.Nongfu Spring and Wantai Biotech, both of which have seen their shares surge since listing, may have become Asia’s richest man, but most people still remember the chairman’s unlisted manifesto.The farmer has changed!As early as 10 years ago, Citic Securities began to guide Nongfu Spring listing.In 2018, the two ended their decade-long ipo coaching.In response, Nongfu Spring said: the company has no plan to go public, and does not need to use the power of the capital market, so it stopped listing guidance.”The capital market is about demand and being wanted, and Nongfu Spring has no demand, so it doesn’t need to be listed,” Zhong Said in a statement.Do not list this kind of words, Nongfu Spring publicly expressed many times.However, on April 29, 2020, Nongfu Spring suddenly formally submitted its prospectus to the Hong Kong Stock Exchange, raising an estimated $1 billion.Why did the farmer change?Why does nongfu Spring, which always insists on “not listing”, change?What can going public bring to the company?01 Listing can raise funds in the capital market and open up new direct financing channels. The enterprise can not only greatly reduce the asset-liability ratio of the enterprise, reduce the fracture of the capital chain, but also improve the credit rating of the bank.Listing is a process for enterprises to improve their brand image.After being listed as a public enterprise, the outside world will know more about the company, which is of great benefit to establishing the brand, improving the corporate image, increasing the public’s confidence in the company and attracting and retaining excellent talents.After listing, a large amount of capital inflows can improve the financial situation, effectively explore the market, and reduce financing and transaction costs.Moreover, mergers and acquisitions can be carried out to enhance the company’s development potential and development momentum, and quickly become bigger and stronger.Going public is a great opportunity for enterprises to change. It can help enterprises solve historical problems and explore overseas market opportunities…If the enterprise is small and still has a long way to go before going public, it can first use equity financing to absorb social funds and make the enterprise bigger and stronger with the help of capital.How should companies finance themselves?Financing is not difficult for those who can, but not for those who can.Capital-minded entrepreneurs find it easy to raise money and are willing to do it.And the traditional thinking of entrepreneurs, not only feel financing difficult, but also feel that listing is unreachable.Where will the entrepreneur with capital thinking be compared with the entrepreneur with traditional thinking?First, they have a capital mindset, are aware of the huge resource opportunities of financing and going public, and can use the power of capital to achieve goals.Second, they can see the project from the investor’s point of view, and they know what the capital cares about.Third, they will use the financing tool — business plan (hereinafter referred to as “BP”) to communicate with investors on the spot.Some entrepreneurs will say, “It’s just a BP, I’ll pay a company to write it!”Note that no matter who writes the BP, the founder understands capital thinking and organizes the project.If entrepreneurs do not know where the focus of capital is, they will not raise money even if they borrow a good BP.If an enterprise wants to plan a BP favored by investors, it should tailor the project from the perspective of capital, so as to obtain more opportunities to communicate with investors and pave the way for successful financing.For example, we know that investors value high-growth enterprises more, so we need to know what are the 9 standards for high-growth enterprises, and then make the project into a high-growth model.High growth of 9 standards 1. Positioning line?2. Is there much space?3. Is the product good?4. Is the model good?5. Is the team strong?6. Is there any molding?7. Is the deployment ok?8. Are there enough resources?9. Is the future wrong?So what is the logic behind the high growth?How to use 9 logic to write eye-catching BP?How to make an impressive BP, you will find a fruitful answer in the Middlebury capital ecosystem.