Story of a Big Player from Gangnam Chapter 784 – Determination of Public Offering Price (Chapter 1) – Part Chapter 1

Chapter 784: Determination of Public Offering Price (1) – Part 1

A moment after Manager Myeong-Sook Jo left the office, the internal auditor came into Gun-Ho’s office. A smile was on his face.

“Sir, I just received a call from our agent— the stock brokerage company. Tomorrow, they are opening the estimated demand for our share price which would reflect the institutional investors’ interest in our company.”

“Tomorrow? I wonder how many of them participated in it.”

“I heard that there are more than 300 institutional investors who participated in calculating our initial share price.”

“Opening it tomorrow means that it’s sealed, huh?”

“That’s right, sir. Would you like to go and see the opening tomorrow?”

“Who’s coming tomorrow to see the result?”

“The participating institutional investors will be there. Also, the people from the stock brokerage company and related people will be there too. Oh, the auditor from the stock brokerage company must attend as well.”

“I think you should go there too, Mr. Internal Auditor. The price will be determined by the average price from the estimated demand coming from the participating institutional investors anyway.”

“That’s right, sir. I will go there tomorrow and will let you know the result as soon as I find it out.”

“We have to announce the result, right?”

“Of course, sir, we have to. Even if we don’t, our agent— the stock brokerage firm— will probably send the result to the media. The public investors need to know it.”

The following day, Gun-Ho went to work in GH Building, Sinsa Town. When Gun-Ho was reading a newspaper in his office, he received a call from GH Mobile’s Director Jong-Suk Park.

“Bro? It’s me. I signed the lease contract for the factory in the Baekseok Agricultural and Industrial Complex. The thing is that they charged me a lot for their real estate commissions. Son of b*tches.”

“It’s probably because the transaction is for a factory building. That sort of transaction is not very usual anyway.”

“Well, I shouldn’t talk badly about real estate agents. My father-in-law is running a real estate agency office.”

“When are you supposed to pay the entire purchasing price?”

“Since the factory is vacant, I can use it right away once I pay the price. So, I told them that I would pay after a week.”

“When you form and register the business entity— GH Machines, you can use that address then.”

Jong-Suk Park said, “President Song told me that I can take the ten twin screws that GH Mobile purchased from the West Moulding in the U.S. for the same price that they paid. I was surprised when he offered me to buy them for the same price. It’s not usual for a cheap person like him.”

“Oh, really? That’s really nice. You probably want to leave those twin screws in GH Mobile for a while though until your place is ready, while keeping them unpacked.”

“I think so. I will have to wait at least a week to occupy the factory.”

“Well, I recommend you that you take a deep rest until you move into the new factory in the agricultural and industrial complex.”

“Bro, while I’m waiting for the factory ready, can I visit Min-Hyeok brother in China for fun?”

“Sure, why not? Why don’t you take your wife with you then?”

“Well, I’d better go on the trip by myself. My wife needs to stay at home with our baby. Min-Hyeok brother has kept asking me to visit him in China when I have time, whenever I talk with him on the phone.”

“Sounds good. You can also visit Dyeon China while you are there. Dyeon China will be your client company after all. And, let our new company— GH Machines— pay for your first trip to China.”

“Are you sure? Haha. Thank you so much.”

In that afternoon, Gun-Ho received a call from the internal auditor.

“We have our company share’s public offering price now, sir.”

“How much is it?”

“It’s 26,000 won per share, sir.”

“Haha. It’s very close to what we expected. Good job.”

“I will post the price as 26,000 won per share then, sir.”

“Sounds good. So, once Dyeon Korea is completely registered with KOSDAQ, and once the stock market is open, our stock will be offered at 26,000 won?”

“Not necessarily. The opening price will be the price of our share that is actually traded on the first trading day.”

The next day, every single one of the economic newspapers covered Dyeon Korea’s going public, and that made Dyeon Korea become widely known. Even if Dyeon Korea was a joint venture company with a partner, it was now a public company that was registered with KOSDAQ, and Gun-Ho was its president. Gun-Ho was not its CEO who was just hired to operate the company, but he was the president who was also the company’s major shareholder.

Gun-Ho was having his tea that Secretary Yeon-Soo Oh brought to him earlier, with his legs crossed in his office in GH Building, Sinsa Town, when he read the news coverage on the newspaper.

[Dyeon Korea’s public offering price has been determined as 26,000 won per share. It was determined based on the base data that was collected from various domestic and international institutional investors throughout the past two days on September 6th and 7th, and as a result, the price was finalized to 26,000 won. It was officially announced during their public notice for September. Accordingly, Dyeon Korea’s market capitalization would be 135.2 billion won. In this public offering price determination, 360 domestic and international public investors participated, and the competition rate is 9.42.

Dyeon Korea is a manufacturing company that produces raw materials for engineering plastics. As the company goes public, it can now aggressively expand its business to the entire Asia market, and the brand name— Dyeon Korea— will be soon widely well recognized.

Dyeon Korea’s stock will be offered to public investors on September 12th and 13th, and 600,000 shares will be available. Dyeon Korea will make its official entry to KOSDAQ market on September 25th.]

Once the newspapers started talking about Dyeon Korea’s going public, a lot of articles about it began to appear on the internet as well. Gun-Ho’s phone started busily ringing accordingly.

The first call that Gun-Ho received was from Attorney Young-Jin Kim at Kim & Jeong Law Firm.

“Congratulations, man. I just saw the news on the internet. You are incredible, Gun-Ho Goo!”

A lot of calls ensued after Young-Jin Kim’s. Gun-Ho received calls from GH Mobile’s President Song and also from Minister Jin-Woo Lee. Many of his classmates from the Advanced Center for Administrative Development at Seoul National University called Gun-Ho as well to congratulate him on his company going public. Also, the calls from H Group’s CEO, A Group’s CEO from its department of planning and coordination, Egnopak’s president, and Mandong Company’s president, and S Group’s CEO came through as well.

On the other hand, he received only one congratulatory message from his high school friends. It was Won-Chul Jo. He didn’t call, but instead, he sent a text message to Gun-Ho in congratulating him. Maybe Gun-Ho’s high school friends didn’t read economic newspapers on a daily basis, or they were not so interested in how companies were doing in the country. Anyway, Gun-Ho was feeling great as he read the news article about Dyeon Korea, but he expressed his delightedness by being rather humble.

“Why are they making a big deal out of this? I own only half of the company since it’s a joint venture. Maybe I should have GH Mobile go public as well. Hmm, maybe not. GH Mobile is somewhat related to Minister Jin-Woo Lee, and we don’t want the company to draw attention from the public. I’d better keep a low profile with GH Mobile.

Maybe I’d better keep GH Mobile as a private company forever. Instead, I can focus on making money from it. Then, which company should I make a public company next? GH Media? GH Development? Nah. These companies are too small to go public, and they won’t be able to fulfill the requirements. What about GH Machines that will soon be open? If GH Machines go public later, Jong-Suk Park will make a fortune with his 20% ownership interest in it.”

Gun-Ho was feeling sore in his throat after answering numerous calls that day. He asked for Secretary Yeon-Soo Oh.

“Do we still have Chinese tea?”

“Do you mean Longjing tea, sir?”

“Hmm, yes. Please bring me a cup of that tea.”

“Yes, sir. Coming right up.”

When Secretary Yeon-Soo Oh opened Gun-Ho’s office door to leave, Director Kang stuck his head in and said, “Sir, I read the news. Congratulations.”

Manager Hong who was in charge of accounting work in GH Development also said loudly, “Congratulations,” from her seat. On the other hand, Assistant Manager Ji-Young Jeong and Secretary Yeon-Soo Oh looked puzzled wondering what was going on.

If you find any errors ( Ads popup, ads redirect, broken links, non-standard content, etc.. ), Please let us know < report chapter > so we can fix it as soon as possible.