Chapter 269 Persuading Big Liu to List Amega Company!
"You still know too little about the power of capital," Lin Haoran laughed heartily.
"The power of capital?" Liu Luanxiong muttered.
In another world, after Amega's profits sharply declined, Liu Luanxiong had been reluctant to accept defeat.
He attempted to diversify Amega's business into lighting, kerosene heaters, and other products.
However, these diversification efforts failed to recreate the glory of 1979.
It wasn't until 1983 that Liu finally decided to take Amega public, which greatly boosted his wealth and marked the start of his stunning rise as a Hong Kong capitalist.
In this world, due to Lin Haoran's intervention, Liu's starting point was even more impressive.
Lin's early investment had allowed Amega to reach remarkable scale, capturing an even larger share of the North American fan market.
Not only that, Amega had also expanded into Europe and other regions.
In this parallel world, Amega's strength had at least tripled compared to the original timeline.
Over the past two years, Amega had quietly made a fortune.
While many in the manufacturing industry knew about Amega's sudden rise, few understood its true power.
"Yes, capital power.
Making money the traditional way can make you rich, but it won't make you a top tycoon.
Look at Hong Kong's leading tycoons—Bao Yugang, Li Jiacheng, Lee Chiu-kee, and others.
If they had stuck to traditional development, they could never have become titans of the business world.
Before becoming giants, they all wisely chose to take their companies public.
Once listed, their brands, public image, and competitiveness skyrocketed.
More importantly, IPOs raised massive capital quickly," Lin Haoran said.
"Think about it:
Amega isn't listed yet, so there's no official market valuation.
But once we list, based on our strong recent performance, our market value will soar.
Our current profits have already been distributed through dividends.
Once listed, Amega's public valuation will become part of your assets—not just cash in hand.
Thus, doubling your net worth isn't difficult.
And with the raised capital, you can expand Amega—or diversify into other industries!
Didn't you always dream of becoming the chairman of a listed company?
Once Amega goes public, that dream will come true.
You'll become a young rising star in Hong Kong's business world, and even your Liu family will look at you differently!" Lin Haoran said, laughing.
Though Lin made it sound like everything was for Amega's bright future, deep down, he had another motive.
He wanted to cash out.
With declining orders expected next year, Amega's annual profits would likely shrink to HK$10–20 million.
Dividing that with Liu would yield a few million a year—barely worth Lin's time.
Thus, while Amega was still riding high, Lin wanted it listed—to sell his shares at a high price and exit cleanly.
He felt no emotional attachment to Amega.
Once listed, he could sell anytime—there were no restrictions like future stock lock-up periods.
With Oriental Daily promoting Amega's success story, its achievements would become widely known.
After the IPO, Amega's valuation would surely soar.
Even if the company's profits later declined, it would have nothing to do with Lin anymore.
Taxes paid last year—over HK$30 million—would serve as proof of Amega's past glory.
Hearing all this, Liu Luanxiong's eyes lit up.
Especially Lin's words about becoming a listed company's chairman, earning fame, and earning admiration from his family.
Each point hit home.
All his earlier worries about declining sales evaporated.
Now, Liu's mind was fully occupied with thoughts of the benefits of taking Amega public.
"Haoran, do you really think we can raise big capital by listing?
Could we become as famous as Cheung Kong Holdings or New World Development?" Liu asked nervously.
Youth always dreams of glory.
Now Liu pictured himself as the celebrated head of a listed company.
Though excited, he still felt a trace of doubt—it was all too new.
"Of course.
Earning billions of HK dollars annually puts you ahead of most listed companies.
If people knew last year's and this year's performance, they'd be stunned," Lin Haoran said confidently.
"So... shall we decide to list Amega?" Liu asked, still tentative.
Despite being a billionaire, he lacked real experience in capital markets.
His only confidence came from Lin Haoran.
"Yes.
Now is the perfect time.
Next year, with declining performance, it'll be harder to list at a high valuation.
If we list now, we can use the raised capital to diversify into new industries," Lin Haoran continued.
He explained that listing while profits were strong would ensure maximum valuation.
"Alright, then let's do it!" Liu finally agreed.
Had this been last year, when profits were booming, he wouldn't have considered it.
After all, listing meant sharing profits with outsiders.
But after seeing the decline in the U.S., Liu realized future profits would shrink.
Better to let shareholders share the risks.
Moreover, the fame, wealth, and prestige from being a listed company chairman were very tempting.
"Since we agree, we can start preparations right away.
You might not know the listing process, but don't worry.
I have strong connections with Wardley Ltd, a subsidiary of HSBC.
They specialize in IPOs.
They'll handle everything for a service fee:
regulatory filings, prospectus drafting, exchange applications, marketing, public listing...
You only need to cooperate.
Within two months, you'll be chairman of a listed company!
Wardley can even serve as the lead underwriter to help sell our shares," Lin explained.
At that time, Hong Kong's securities regulations weren't as strict as they would be in later decades.
Two months was plenty of time.
It was now mid-July.
By mid-September, Amega could become a listed company.
Amega, with over HK$1 billion in annual revenue and 20–30% profit margins, was a gold-standard company.
Listing would be effortless.
Hong Kong had over 1,350 listed companies—but many were small or unprofitable.
Amega would easily rank among the top 50 by market capitalization.
Thus, listing was no challenge at all.
The real question was how to secure a good IPO price.
But with Lin Haoran controlling both TVB and Oriental Daily, he could easily ensure overwhelming media support.
Reporting on Amega's achievements would make the company a household name.
At that point, securing a successful IPO would be a breeze.
Such worries were unnecessary.
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 30 Chapters In Advance: patreon.com/Albino1