The Australian telecom finally "dumped the goods"

Absrtact: If the depreciation of the dollar and other factors, such a return on investment, it is really not a lot of success. If again and in China's gem to make a plate full of VC, compared to the world, it is a big difference.

SouFun finally went public. The 11-Year-old property site, which has been published repeatedly in recent years, has finally landed on the New York Stock Exchange on September 17 this year. Its IPO price of 42.5 U.S. dollars, the first day of the opening of the opening 67.00 U.S. dollars, higher than the issue of issue 57.6%, and eventually to 73.5 U.S. dollars, compared to the issue price rose 73%. A week into the market, the highest to 74 dollars. As of press, the share price was 67.22 dollars.

Previously, it was expected that SouFun will be listed at the end of the year, but the industry unexpectedly was its flash on September 17. Some analysts pointed out that the early this year, the country introduced real estate control policy, the real estate market as a whole into a depressed state. SouFun reported a sharp fall in net interest rates in the first half of the year, falling rapidly from 41.41% to 7.77%.

In the first half, SouFun total revenue of 68.185 million U.S. dollars, slightly higher than the Sino-house letter of 64.5 million U.S. dollars, but its 5.3 million dollars net profit is only half of the Sino-house letter 9.4 million, mainly because its net interest rate is far lower than the Sino-house letter. According to this trend, SouFun's quarterly data won't look good either. Therefore, soufun than expected to be listed earlier, do not rule out the possibility of avoiding the three quarterly data.

In fact, SouFun is also prepared to "spend the winter", and its prospectus makes it clear that it intends to retain all available funds and any future revenue to strengthen existing operations and to fund future business expansion, so do not expect companies to pay any cash dividends for the foreseeable future.

The Australian telecom finally "dumped the goods"

SouFun a 42.50 dollar price for Chinese internet companies to create the highest IPO record in the United States, earlier listed, has hit more than 700 U.S. dollars per share of Baidu, its offer is not more than 27 U.S. dollars.

SouFun such a high price is indeed a surprise to the public, because its competitors, the performance and growth of the better China Real Estate Information Group, last October 16, the U.S. Nasdaq listed on the IPO price is only 12 U.S. dollars, the first day opening 12.28 U.S. dollars, only beyond the issue price of 0.28 U.S. dollars. And that's when China's real estate market is the hottest or even crazy.

Analysis points out that such a high price, in fact, more is the result of the interests of all parties, the basic bottom line is to ensure that SouFun's largest shareholder in Australia Telecom can get off smoothly. In September 2006, the Australian Telecom bought a stake of SouFun 50.6% at a cost of 254 million dollars. Through the deal, the Australian telecom to become earlier into the soufun of VC buyers.

At that time SouFun and its VC shareholders, was able to cede more than 50% of the shares, presumably also out of funds, performance and other considerations. Of course, the Australian telecom does not want to make itself the last one, so from 2006 onwards, the News of the "forthcoming" listing SouFun, until 4 years later today finally become a fruition.

In the IPO, the company has the largest share of its shares, which will hold 19% of its soufun stake of $42.5 per share and a total of $163 million to the Pan-Atlantic Capital Group (General Atlantic). In exactly the same conditions, 19% of the SouFun shares to 42.5 U.S. dollars per share, a total of 163 million U.S. dollars to the private equity institution, Apax partner. At this point, the Australian telecom has cleared the SouFun 38% shares, a set of 326 million U.S. dollars.

At present, the Australian Telecom also holds SouFun 12.6% shares, if the remaining shares in the future transfer of 42.5 U.S. dollars per share, the total amount of Australian telecom from the SouFun 433 million dollars. From 2006 investment of 254 million U.S. dollars to 2010 return about 433 million U.S. dollars, the Australian Telecom 4 years, the return of less than 100%, the average annual less than 25%.

If the depreciation of the dollar and other factors, such a return on investment is indeed not much success. If again and in China's gem to make a plate full of VC, compared to the world, it is a big difference.

The Pan-Atlantic Capital Group, which is connected to Australia Telecom, and the two institutions in Shenzhen, are also the world's top institutional investors. Analysis points out that the current soufun of 67.22 U.S. dollars in stock prices, more than 58% of its cost price, two institutions also have enough space for manoeuvre, its future return on investment should only be on the Australian telecom. In the short term, the probability of soufun break should be small.

SouFun financing only 10 million dollars

SouFun this listing, in fact, more can be regarded as the Australian telecom stock listing, the first major shareholder of Australia Telecom and several other shareholders out of their own shares "sell" to the market, in the total distribution of the 2.9 million copies of the United States Depository Shares (ADS), the Australian telecom issued 1.8 million, SouFun only issued 246,914 ads, accounting for less than 10%. In terms of $42.5 per share, soufun a total of about 10.5 million dollars. The analysis points out that, compared with the surprising 42.5 dollar IPO price, the SouFun actual financing amount is very little pitiful. After the success of the Australian telecom, although SouFun founder Tianquan back to the position of large shareholders, but at least from the current point of view, still belong to the rich paper.

So who is the highest rate of return on investment? In the SouFun 11-year history of the stock change can be seen, the earliest IDG made the first Investment Angel, 1999 IDG to 1 million dollars of investment won SouFun 20% of the shares. Goldman Sachs became the first venture capitalist in March 2000 and won about 30% per cent of SouFun in 5 million dollars. In June 2006, when the Australian telecom injected into SouFun, IDG transferred its holdings of about 10% of its shares to Australia, which is 45 million dollars. Only from then node, IDG only sold about half of the shares, in 6 years to profit 45 times times. The remaining shares of about 10%, IDG has been held to SouFun listed, and in the process of the listing again part of the cash.

Goldman Sachs ' Chinese real estate idea

In SouFun listed, the biggest profit is IDG and Goldman Sachs. Goldman, for its part, not only made a full profit from equity investments, but Goldman Sachs, the SouFun-listed main underwriter, made a profit in underwriting fees, a "take-all".

Analysts point out that IDG has spared no effort to invest in Chinese internet companies, but Goldman Sachs does not invest much in Chinese internet companies, and the SouFun's direct investment is based more on its layout of Chinese property.

A recent example of comparison is real estate in the 21st century. January 28, 2010, China Real estate in the United States New York Stock Exchange listed in 21st century. The IPO price is $7 per share, with the first issue of 12.5 million U.S. depository Ads (15 common shares per ADS) for about 87 million dollars.

In the real estate intermediary market, the 21st century real estate is not as I love my home, Chain Home real estate, the Big Henderson and other well-known, but can be the first listing. It is noteworthy that the real estate intermediary behind the same Goldman Sachs figure. Goldman Sachs Strategic Investment (Asia), a wholly-owned subsidiary of Goldman Sachs, in December 2005 injected $22 million trillion into China's real estate in 21st century as its second-largest shareholder.

In the 21st century Chinese real estate listing process, Goldman Sachs as its main underwriter, while earning an equity premium and earn more underwriting fees, its "watertight" way and SouFun almost expatiating. If there is any difference, it is the 21st century real estate market shortly after the IPO price below 7 U.S. dollars, the current share prices hovering around 5 U.S. dollars, compared to the issue price of 30% or so, and the future trend of SouFun shares is not clear.

If Goldman's abacus is only VC and investment bank, it is clearly a underestimate of Goldman Sachs. Listing for the SouFun and 21st century real estate two companies themselves, may also be called the purpose. But for Goldman Sachs, the "advanced" group, at best, is only a means.

Real estate website's main revenue comes from the real estate business and intermediary's advertisement, the real estate intermediary's main revenue comes from the second-hand house transaction. The Spring river water Heating Duck Prophet, the profit pattern decided the real estate website and the intermediary often can first perceive the real estate market the warm and cold.

And Goldman Sachs, as a shareholder of the two companies in SouFun and 21st century, can naturally get a lot of key data, such as corporate advertising budget and individual second-hand housing, which are difficult for outsiders to obtain, and give a unique advantage to its forward-looking trend of China's real estate market, and Also for its foresight to take countermeasures and even tried laid the information foundation.

This time, Goldman Sachs to help SouFun listing, also equivalent to easing the real estate and intermediary agencies advertising pressure, after all, after the soufun of money, in advertising prices, settlement time and so on can accommodate more than the past is a lot of room. From many property developers and intermediaries to SouFun sent a congratulatory message, can be seen celebrate joy.

In the recent July, Jim O ' Neill, global chief economist at Goldman Sachs, said publicly, "the risk of China's housing bubble has been removed and the Chinese government has done a good job." "In this regard, there is a situation, one side is the government's continued pressure on real estate developers, while Goldman Sachs from the cast of public opinion to the actual action, are directly or indirectly to the real estate developers."

Analysts point out that Goldman Sachs in the Chinese real estate market is not to be investigated. In fact, Goldman's Whitehall fund is the world's largest real estate investor, with a huge investment in real estate projects in China and a lot of real estate developers. Therefore, in the current situation, only the continued long property market, only space profits.

In addition, apart from the property market, in the stock market, foreign exchange, futures and many other markets, Goldman Sachs has long played the role of "Trader" and "gluttonous", so that China, as well as the world's enterprises and industries to eat the pain is countless. In China, Deep South power, Deep South power, Air China, Eastern Airlines, Prince Milk and other Chinese companies in the gambling with Goldman flee, in the US, Goldman Sachs has damaged rivals such as Bear Stearns and Lehman Brothers, and has been behind the "Madoff century Scam"; in Asia, Goldman Sachs single-handedly concocted the Vietnam crisis; Goldman Sachs tried, single-handedly directed the Greek financial crisis. These are only the "drizzle" of Goldman Sachs in its 141-year history.

As China's real estate market enters a slump, SouFun can also be listed at such a high price, after a succession of regulatory measures, home buyers did not feel the price of a lot of loosening, and some public opinion and hype to promote the bubble has been removed, so that buyers are on pins and needles, the intermediary structure and hype up the rent, So that the cost of rental greatly increased, the tenants will be forced back to the new house market ...

All this seemingly difficult to solve the strange image, perhaps early in some interest groups in the sand table deduction.