When guoqing to reshape entrepreneurs and capital and investment banking relationships

Dangdang CEO Guoqing claims to reinvent entrepreneurs and investment banking; industry insiders say IPO pricing is something you want me to do. Sun Jinshu in New York more than one months, E-commerce website Dangdang CEO (DANG. NYSE) guoqing on Weibo for one months.　　First scold early investment institutions, these days and in charge of Dangdang listed investment bank, eventually triggered a network to scold. "Rock lyrics, Fiction: For our business, you give a valuation of 1 billion ~60 billion, one to Hong Kong to write a prospectus to see the Korean open fire, only write 700 million or 800 million, don't TMD acting." I have a big temper.　　Wife enjoy the brilliant roadshow, forget why you whisper private hi. King x eggs know that the next day the opening will be 2 billion, also priced 16, also 1.1 billion. The next day, the CFO was the stock price scared to pee, I said endure this tone, passed the silent period ... (7 words omitted, Editor's note).　　Guoqing wrote on January 15 's microblog. "Literary creation is in innuendo.　　Guoqing yesterday to the "First financial daily" reporter said. This is not the only microblogging that guoqing to the investment bank.　　The cause of the incident was Dangdang's IPO main underwriter, a bank of Credit Suisse and Morgan Stanley, which recently funded a dinner of more than 30 people. "Now I'm so angry that my hands are shaking. "The matter is guoqing know, his discontent does not spit unpleasant." "I didn't want to scold the investment bank. He spat on Weibo and expressed his dissatisfaction with the investment bank. He argues that investment banks deliberately depress the price of their dangdang, profiting from the Bulls, and paying for dinner thanks to the investment bank.　　He claims to reshape the relationship between entrepreneurs and capital and investment banks. Guoqing's dissatisfaction, led to a so-called Morgan Stanley (JPMorgan) female employees "lost only satisfying" in the micro-blog on the "Battle", the vulgar words. "Lost only satisfying" the word is more point to guoqing individual.　　It is not yet possible to confirm the true identity of the microblog.　　"Lost only" that the investment bank did not take more than a penny, and for Dangdang's earnings and cash linger two meager, said "careful to cook the book will be whole to the extremities."　　Both sides of the abuse by the network widely reproduced, and has a title called "Very yellow very violent." Guoqing's displeasure comes from the pricing problems of Dangdang's IPO last December.　　Dangdang listed before the IPO, the underwriters to the range of 11~13 U.S. dollars, after the issue price range to 13~15 U.S. dollars, December 8 confirmed the final offering price of 16 U.S. dollars, to calculate the market value of 1.246 billion U.S. dollars.　　When it was listed on the NYSE, it was priced at $24.5 on its first day, up 53% per cent from its IPO price, and then rose by 86.94% per cent to its IPO value of $2.33 billion. Guoqing also mentions search engine Baidu (BIDU. NASDAQ). He wrote: "I do not have Robin Li's self-cultivation, Baidu listed 800 million U.S. dollars, the opening of 4 billion U.S. dollars." "Guoqing said:" So far to do Baidu investment bankers, Li also invited them to eat. But Robin is going toLess ' self-cultivation ', we will be able to share the lessons of posterity. Of course, Robin Li has no obligation. But I have a sense of purpose in the pursuit of justice. Business is also about morality.　　"Baidu in August 2005 on the Nasdaq listing, the price of 27 U.S. dollars per share, the first day of the opening to 66 U.S. dollars, and then close to 122.54 U.S. dollars, up to 353.85% higher prices." In Guoqing view, many of the company's professional CEO, CFO before and after the IPO by the investment bank calculation, but not to keep quiet, a fear of shareholder scold, and then do not offend the investment bank. In his view, a successful listing should fall within 30% of the 1-month range.　　And the price-earnings ratio is linked to future profit growth. "Investment banks always want to keep their prices down.　　Guoqing said that the investment bank in the company's valuation tools hiding, momentum on the pressure, procedural ambush pen, emotional wooing. Yesterday, Innovation Workshop CEO Kai-Fu Lee, such as each person out "refereeing", advised Guoqing to "look forward." Sing to Vice President Li Mingshun that the business people and investors who are not absolute who wrong, must agree with the existing rules of the game, party B completely look at the market at the time of the supply and demand relationship.　　Both the entrepreneur and the financing party must have their own grievances.　　A major international bank in Hong Kong is reluctant to comment on Dangdang's case, but points out that the general pricing of such IPOs is not a matter for the investment bank to decide, which is actually based on the market's peers, and is usually a joint decision between a listed company and an investment bank.　　Another American hedge fund manager told our correspondent that Guoqing's approach was naïve, that the IPO pricing was always a business decision, a kind of behavior that you wanted me to do, and that being the head of a listed company, making such comments would only destroy your image. "If I were their investor, I would call him shup up immediately."　　He said that as the event went on, the share price would not be ruled out by hedge fund pressure.　　The fund manager further explained that a company's IPO pricing is related to a number of factors, investment banks usually need to consider a certain degree of volatility, and Dangdang's first day close to a higher price, the reason is not simply to be underestimated pricing, but also to consider the investors will, but "certainly not a boss."　　Dangdang set up at the end of 1999, the initial business focus on online book sales, and gradually expand its product line to the department store. According to the I-stock website last November 18, the Public Financial Analysis report, Dangdang, although starting from 2009 has been profitable, but its profitability is still fragile.　　33% of the net profit for the year of 2009 came from interest income from non main business, only 10% of net profit in three quarter of 2010 years ago came from main business, one-time income tax income accounted for nearly 70%, the remainder came from interest income of non main business. But some insiders say it's OK to let foreign investment banks look at them. "Let the other domestic companies look also has a strong warning significance, after we and foreign investment banksTo deal with is to increase vigilance. "And a former Morgan Stanley staff on the micro-blog said:" In micro-blog so with the national day talk, at least let Morgan Stanley to leave the impression of lax management. Investment banks and companies before the listing is a conflict of interest, very cruel, right and wrong is not outsiders can easily comment. "Dangdang's shareholding structure, Guoqing, Yu couple accounted for 43.85%. They have been cautious about financing.　　Dangdang on the day of the market, has invested in the IDG, the Tiger Fund leaders did not appear. Guoqing once said to reporters: "VCs and enterprises should be ' marriage relationship ', is an industry only to invest in a company, and then work together, but VCs now in E-commerce can be a lot of vote, who lives who die do not care, as long as one of the betting." ”