As soon as the news of Bomi Company's IPO underwriter recruitment bidding was released, the whole world was in full swing.

"What?! Bomi is going to go public?"

"Bomi? Which Bomi?"

"Which Bomi company can be found? It's Cao Zhei's one."

"My God, how many billions are worth? Bomi Company is already very big now, right? I think they make a lot of money every year."

"That's right. I don't know how much larger it is after Bomi Company went public. This is a monster!"

...

The first person to discover this business opportunity was Goldman Sachs Group. After all, Liu Zhiping, chief strategy officer of Bomi, was previously the head of Goldman Sachs Asia. This time, he naturally tended to cooperate with his old boss first, so he gave the bidding news to Goldman Sachs in advance.

Then, bidding is conducted to investment banks around the world.

After Henry Paulson was appointed as the US Secretary of Finance, Goldman Sachs was replaced by Lloyd Blankfein.

After Blankfein spoke to Liu Zhiping, he was shocked.

His subordinate Morgan looked at his boss standing in front of the phone, looking dull, thinking something had happened.

"Hi, Lloyd, are you okay?" Morgan looked at the company's ceo while stirring the coffee with a spoon.

The phone calls around were overwhelmed, and everyone was concentrating on what they were doing.

Lloyd came back to his senses, looked at Morgan's expression with an incredible expression, and a happy smile appeared on his face, "Bomie Group is actually going to go public!"

"Hmm? Bomi, which Bomi?" Morgan is not very familiar with companies in China.

"It's the Bomi who just released his smartphone some time ago." Lloyd said excitedly.

There was a clang.

The coffee in Morgan's hand fell to the ground.

...

The next day, major media and newspapers published news that Bomi Group was seeking to go public.

As soon as the news was released, it immediately exploded the whole world.

Even the news of the subprime mortgage crisis that was emerging was suppressed.

Countless investment banks have paid attention to this giant dragon company in the far east.

If Bomi was only in his childhood and slowly developing Oriental Dragon, then this time it sent a strong signal to the whole world-

This young dragon will transform rapidly. After completing its transformation, it will become a giant standing in the east, and the whole world will tremble under its feet.

Of course, this incident is a once-in-a-lifetime opportunity for investment banks.

Everyone is very optimistic about Bomi Group's valuation, and is expected to exceed US$80 billion, which means that underwriters who can successfully make Bomi listed will make more than hundreds of millions of dollars in profits.

The New York Times of the United States reported extensively that Bomi is seeking a listing:

"A company from China is seeking to go public.

Since its establishment in 2000, Bomi Group has carried out many businesses, including games, mobile phones, music, literature, film and television, and has become the leader in China's Internet industry.

Before this, Bomi Company has always been a non-listed company. Due to its super high annual income and good corporate structure, external capital has always been very optimistic.

Bomi Group's IPO is undoubtedly the largest IPO in recent years. Currently, investment banks' valuation of Bomi is about US$70 billion to US$80 billion. Such a rare order makes global investment banks salivate. Who will Bomi throw the ball to this global investment banking draft?

Almost all investment banks are competing for this project!

Goldman Sachs, Citigroup and CICC have all become close-knit leaders.

Especially Goldman Sachs Group, because Martin Liu, the former head of Goldman Sachs in Asia, is now the chief strategic officer of Bomi Group, so their cooperation should be the closest, and it is very likely that Goldman Sachs Group will become the lead underwriter.

Let’s wait and see what the future will be, when will Bomi Group go public at what market value and issue price?"

$70 billion?!

When I saw this news, Boss Cao was so angry that you underestimated Bomi Group too much. We are at least a large company of hundreds of billions.

In short, if these underwriters cannot help Bomi Group achieve a valuation and listing of a 100 billion-level valuation, then they will not need to cooperate with Bomi.

Other news media also reported on this matter:

"Yesterday, an investment banker revealed that Bomi Group plans to go public in Xiangjiang and list in the fourth quarter of this year. Once Bomi goes public, it will undoubtedly be the largest IPO in recent years.

The New York Times recently wrote an article saying that considering the huge scale and growth rate of China's Internet market and Bomi's high market share, Bomi is expected to become China's next listed company with a market value of US$100 billion in the future.

On August 19, 2004, Google was listed on Nasdaq, with an initial price of 85, a valuation of US$23 billion, a price-to-earnings ratio of 80 times. It hired 9 brokerages, setting a record for the largest underwriting team.

Currently, investment banks' valuation of Bomi is about US$70 billion to US$80 billion. Once such a large order is taken, it will be enough for investment banks to [take a year]

[Almost all investment banks are competing for this project.]

An investment banker who participated in Bomi's IPO draft said in an interview with the media that Bomi has not made a final decision yet, but there should be results in the near future."

"Open data shows that in the first quarter of this year, Bomi's revenue reached US$2.34 billion, an increase of 80% year-on-year, marking the highest annual growth since the fourth quarter of fiscal 2006;

Net profit was as high as US$642 million, an increase of 172% year-on-year.

In fact, Bomi Group sets records every quarter.

Because Bomi's business is not stagnant, Bomi is still in a period of crazy expansion, and people can't see any signs of Bomi's stopping. Moreover, every expansion of Bomi's business will bring huge benefits to the company, and at the same time it opens up a brand new market.

For such a company, its business capabilities in all aspects are very strong and will naturally be favored by the market. Some experts even pointed out that-

Most investment banks on the market tend to be conservative in valuation of Bomi Company. Judging from its current size, it is at least a large company with a valuation of $100 billion."

“Bomi’s IPO valuation is conservative.

Some analysts have predicted that Bomi's revenue increased by 59% last year, coupled with the good results achieved in the mobile phone market this year, and accordingly, Bomi's valuation reached up to $100 billion, while Google's valuation reached $24 billion at the time of its IPO.

Bomi is obviously much more powerful than Google.

Bomi is actively negotiating quotations with underwriters, hoping to obtain a higher valuation and then obtain more funds raised.

Although I don’t know how much Bomi will raise in the end, according to people familiar with the matter, it is expected to be more than US$20 billion.

This will be good news for both Bomi Company and shareholders."

An investment banker said in an interview with the media that in terms of pricing, Bomi is more inclined to choose a reasonable level.

But some people also said:

"It is not a wise move for Bomi to choose to list in Xiangjiang, because investors in China, especially investors, generally have low incomes and do not have much investment desire and concept for the stock market. Instead of listing in Xiangjiang, it is better to list in the United States, so that more funds can be obtained.

If there is not enough support from investors, it is very likely that the shares issued by Bomi will eventually be collected into the hands of some relatively large consortiums, and there is also a risk of falling below the issue price after the issuance. Bomi Company needs to be very cautious about this."

"Foreign investment banks have more advantages in "relationship network".

Before this draft, it was reported that Bomi will hire Goldman Sachs and Credit Suisse as the underwriter for IPO in Xiangjiang.

According to the experience of domestic companies going public overseas, when the issuance scale is large, most of them will choose more than three investment banks as the lead underwriters. In terms of the choice of lead underwriters, foreign investment banks that can weave a global "relations network".

An investment banker revealed that the lead underwriter has the right to share the majority of underwriting fees. Whether these investment banks have the opportunity to earn underwriting fees depends on whether they can attract enough cornerstone investors.

A sufficient number of cornerstone investors will ensure successful issuance in an unfavorable overall market environment.

Whether this will affect the liquidity of the stock is not a question that the underwriters consider;

Finding the cornerstone investors is the goal of completing this transaction.

In an IPO, cornerstone investors obtain an agreed amount of stocks at a fixed price, but must also accept a lock-in period for holdings.

The reporter noticed that Goldman Sachs frequently appeared among the lead underwriters, mainly because of its strong "relationship accounts", such as Singapore's sovereign wealth fund Temasek, Qatar Investment Bureau, etc.

It is still unknown who will win the end. Please continue to pay attention to our newspaper’s news. We will continue to report on Bomi Group’s IPO in the future.”

...

In fact, Bomi Company's IPO this time is not something that any underwriter in the world can eat alone.

Lead Underwriter refers to a securities operating institution that exclusively underwrites or leads in organizing underwriting group distribution in stock issuance.

The lead underwriter is the most important intermediary agency hired by the stock issuer.

It is both the lead underwriter of stock issuance, the financial advisor of the issuer, and often the issuer's listing recommender.

When a company decides to issue stocks, there are often several, dozens or even dozens of securities management institutions to strive to serve as lead underwriters, and the competition is very fierce.

Bomi Company contacted more than 21 underwriters in total to work on this matter together.

Throughout March, Liu Zhiping was busy negotiating with underwriters, with the main purpose being to complete the valuation of more than US$100 billion assigned by Boss Cao, and then issue an additional US$100 billion in stocks to list at an issue price of HK$400.

Liu Zhiping gathered 21 underwriters together and held a meeting.

The underwriters themselves also know that if they want to run Bomi Company to go public, many underwriters must work together.

After layers of negotiations and screening, Liu Zhiping finally confirmed that Bomi will be listed on the Hong Kong Stock Exchange this time and hired Goldman Sachs Group, CICC and Credit Suisse as the lead underwriters.

The lead underwriter often assumes the identity of the sponsor.

In the prospectus, the joint sponsors of Bomi Group listed on the Hong Kong Stock Exchange are Goldman Sachs Group, CICC and Credit Suisse.

After all, ordinary investment banks dare not take such a big responsibility.

In addition to the three lead underwriters, other investment banks also participated in the underwriting of Bomi Group's IPO, including China Merchants Bank, Citigroup, **** Bank, and Morgan Stanley...
To be continued...