After the Divorce, I Could Hear the Voice of the Future
Chapter 397 - 394: Lu, the Kept Man

On the 8th, Lu Liang returned to Modu.

Just off the plane, he was picked up by Panda's General Manager Long Fei and chauffeured to the Hilton Hotel.

"I don't know what you're so nervous about, going public is a sure win, and Panda is the first live-streaming platform in China to go public in the US."

As soon as he arrived at the hotel, Lu Liang saw Little Wang holding a draft, nervously reciting key points for the upcoming speech.

"How could I not be nervous? It feels like raising a child for eighteen years as both a father and a mother, and finally facing the college entrance exam."

Little Wang was visibly indignant, Panda was his career, if it failed, he would only be able to be a rich second generation waiting to die.

And this rich second generation wasn't just any ordinary type, but the kind that could live carelessly, spend days in luxury and avoid becoming a target of envy.

At the beginning of the year, Wanda was hit with a double whammy of stock and debt declines, which although was a bad thing, it turned out to be a blessing in disguise as it was a way to survive by severing an arm and solve the issues. Now it seemed like a good thing.

Because Wanda paid a heavy price, even solving some lingering minor issues that plagued its development for over twenty years in one fell swoop.

In other words, they are already in this state, what else do you want from them, leave a line, so we can meet again nicely in the future.

As the only son, naturally, he could also enjoy this buff.

Lu Liang was skeptical: "Are you bragging?"

"Serious!" Little Wang said earnestly.

"Come on, don't make yourself out to be so noble, at best you're just the Uncle Wang next door."

Lu Liang rolled his eyes and looked at Long Fei, who was still proofreading the process. He was the one who had to act as both father and mother.

If Panda's success were to be divided into ten parts, Long Fei would count for four, he himself for two, Little Wang for two, and the rest would belong to others.

During the early and middle stages of development, Little Wang had a more negative than positive impact, although it was easy for him as the son of the First Rich to secure financing.

But because it was too easy, he spent money carelessly and was always picking fights, making enemies everywhere.

After one internet cleanup, the capital chain was on the brink of collapse, and he even faced the Iron Fist of Capital from Tencent and pressure from investors.

It was only with the exploding popularity of live-streaming for direct sales that Panda found a profitable model, otherwise, it would have been over long ago.

"Would it kill you to say something nice?"

Little Wang looked aggrieved but then magnanimously said, "Never mind, I'm in a good mood today, I won't hold it against you."

He tossed over a pile of documents, looking proud: "Take a good look, open your eyes wide and see clearly."

Last quarter, Panda's sales figures for live-streamed goods and the platform's share of profits.

Total sales reached 5.815 billion, with revenue at 380 million.

"Incredible, did the old TV shopping model, just with a new cover, really work this well?"

Lu Liang was surprised to realize he had underestimated this field, with each live broadcast generating sales in the tens of millions, and the commission never dropping below 5%, skincare products even reaching as high as 80%.

However, it might have been a rush for volume toward the IPO, or perhaps Panda had fewer female consumers—last quarter the skincare product broadcasts only made 80 million in sales.

When Lu Liang saw Li Xiaomeng's name, he noticed she had done nine broadcasts last quarter, contributing 23 million to skincare products; after deducting the platform's 50% share, she still made 11.2 million in profit.

After nearly half was taken for taxes, she still took home 5.5 million, and with signing fees and audience tips, her annual income should reach ten million.

No wonder every time Lu Liang went home lately, he saw so many fancy trinkets and furniture.

Unknowingly, she had become a little rich woman.

From a Little Li being taken care of, to an old Lu being taken care of.

The deputy card from the bank he once gave her hadn't seen a transaction message in a long time.

Little Wang was triumphant: "It's not that TV shopping works, it's that there are too many middlemen these days."

Merchants want to make money, platforms want to make money, and manufacturers want to profit too. These days, despite seeming information advancements, products haven't gotten any cheaper by the time they reach consumers.

They managed to establish direct-to-consumer sales, connecting directly with manufacturers, bargaining with quantity for low price advantages and then giving benefits back to consumers.

Sometimes, though, he envied the two neighbors next door, especially Douyu, which struggled after the failed merger and was set free by Tencent to fend for themselves with Huya.

Douyu did everything in its power to raise funds, and the profit from branding made him envious.

Take the best-selling daily product, tissues, as an example: partnering with top brands like Jierou and Vinda would only yield commissions of 5%-8%, but pushing their in-house brand could reach over 30%.

Last quarter, the total sales volume for tissue products was 380 million—if they manufactured and branded it themselves, the revenue wouldn't just be 24.7 million, it would at least reach 114 million, a dramatic difference of more than fourfold.

Though both were tissues, different standards of production and costs applied, some were only good for wiping hands and tables, while others were suitable for wiping mouths and bottoms.

"Money can be earned again, but without a conscience, undoubtedly one can make much more," Little Wang sighed. He always called his audiences 'buddies' in the live streaming room, and he truly regarded them as such.

People come to Panda, to the live room to buy things, because they trust him and also want to snag a bargain.

Earn a little less, then just earn a little less, after all, money is hard-earned for the buddies, their money isn't just blown in by the wind.

"Smart kid, I'm really pleased," said Lu Liang, with a smile lifting the corners of his mouth and a look of satisfaction on his face.

Suddenly, he understood why the second generation of entrepreneurs often fails—it's because those born into wealth don't have a particularly strong desire for it, and their entrepreneurship is largely about reputation and proving themselves.

In the cutthroat business world, the merciless make more money, and this is certainly not an empty platitude.

As long as the products for consumption don't kill people, that's good enough, after all, people are not that fragile.

And if they do die, it's fine as long as it's not happening en masse, the occasional one or two survivors' deviation won't cause a stir.

"Have I ever told you? Stop looking at me with those eyes?"

Little Wang narrowed his eyes, feeling for the 22nd time the impulse to strangle Lu Liang.

Lu Liang smiled and didn't provoke him further. Seeing Sun Yutao approaching, he greeted him, and the two stepped aside to talk.

Panda was valued at 3.8 billion US dollars, with an offering price of 1.98 US dollars per share. Modu Station released 192 million shares for subscription, raising 3.8 billion US dollars.

In order to ensure they could dazzle on Nasdaq after listing, Tianxing Private Equity planned to put up all their cash, totaling 9 billion US dollars.

They split it into two subscriptions, 4.5 billion US dollars each, to participate in the subscription at Modu Station and subsequently, at New York Station.

Although Little Wang could initiate another round of financing before the IPO, the funds raised would be original shares, subject to a six-month lock-up period.

They can only acquire shares that could be traded on the very first day of listing by subscribing through the IPO and winning the allocation by lottery.

Sun Yutao looked at the increasingly crowded venue and sighed, "It's just uncertain how much we can win in the allocation."

In this roadshow, there was only a 3.8 billion US dollar share available, their 4.5 billion US dollars pushed the subscription ratio up to 11.8 times.

Inside the venue, with large institutions and small speculators present, a subscription rate in the hundreds was expected to be the norm.

The more money participated in the IPO subscription, the lower the probability of winning an allocation for each subscription.

"Two hundred times, three hundred times, that's not a problem either."

With a smile, Lu Liang considered helping Panda go public in the US and shine on Nasdaq as just a part of the process, not the result.

Previously, they had been fighting in the international markets, akin to common battlefields, but this was their first foray into the stronghold of Wall Street.

Success was just getting a foot in the door.

Approaching two o'clock in the afternoon, every financial institution and individual with any currency holdings from across the straits and the three regions had come.

The banquet hall that could accommodate five hundred people now felt a bit crowded.

Seeing Lu Liang, Shen Peng came over to ask, "Mr. Lu, do you think it could surpass 258 times?"

Lu Liang pondered for a moment and replied, "I feel it could be much more, what's the scale of Ali, and what's the scale of Panda."

The highest IPO subscription rate to date was held by Ali, with a ratio of 258 times, freezing 450 billion US dollars for its listing in the US.

It's worth noting that at the time, Ali's market value was 156 billion US dollars, and it went straight to the New York Stock Exchange with an offering price of 86.5 US dollars.

In contrast, Panda's market value was 3.8 billion US dollars with an offering price of 1.98 US dollars, meaning a much lower threshold and potentially more subscription capital.

"Who would have thought Panda could make it to the listing."

Shen Peng fell silent for a long time, heaving a deep sigh. As the biggest VC institution in the country, he rarely misjudged opportunities.

Even when he did, he would swiftly follow up in subsequent rounds of financing to make up for the initial oversight.

Initially, Shen Peng too had contact with Little Wang, but felt that under Little Wang's management, Panda wouldn't survive three years.

When investing in a company, performance is secondary; the key is the manager's ability, character, and knack for using people wisely.

Ability, character, understanding people—all of which Little Wang had only half, which was understanding people.

Long Fei was a capable steward, but Little Wang shouldn't have been pointing fingers and meddling all day, putting on airs about so-called Eastern Disneyland.

For this reason, he had given up on investing in Panda.

At the time, Lu Liang also opted for a laissez-faire approach to Panda, watching as it faced a netting crisis that nearly broke its capital chain without lifting a finger, further proving his decision to give up on Panda was correct.

Unexpectedly, after two rounds of AB financing, ignoring everything, Lu Liang suddenly entered the fray in the C round of financing as live stream sales took off.

Then Panda started to grow rapidly, and Redwood had no opportunity to enter the fray, until now.