Chapter 404 Citibank's Regret
4.6 million shares at an initial offering price of 22 dollars each — although this amount was not massive, it was substantial enough.
Part of these shares had already been subscribed by investors, while the remainder was held by brokers, who had their own strategies for how to handle these stocks.
Apple's IPO was supported not only by its own extensive promotional efforts but also by significant promotional backing from NASDAQ, laying a solid foundation for a successful debut.
Moreover, Apple already had a vast fan base across the United States.
In this era, people who had access to computers or received computer education mostly came from affluent families.
As expected, many investors were closely watching the developments surrounding Apple's listing.
Across America, they followed every tiny market fluctuation through brokers and intermediaries.
On the secondary market, Apple shares began trading, and the price movements were intense:
It first rose to 23.5 dollars per share,Then climbed to 23.8 dollars,Before surging all the way to 24.6 dollars per share,Shortly after, there was a slight pullback to 24.3 dollars,...
Each fluctuation gripped countless investors' hearts, and Apple's executives watched closely as well.
Lin Haoran stayed at NASDAQ for over an hour, and by the time he left, Apple's stock price had already risen to 25.8 dollars per share.
Having already experienced the ups and downs of multiple listed companies, Lin Haoran remained composed.
Initially, he was a little excited, mainly because of his memories of Apple's legendary status.
But after a while, that excitement faded.
The key reason was simple: Apple at this moment was still far weaker than the Apple he remembered — it didn't even match the overall strength of his Land Holdings Group.
After leaving NASDAQ, Lin Haoran returned to the Universal Investment Company office.
"Boss, Mr. Burton from Wanching Group called around 9 a.m. He said he has something to report. If you're back, please call him at home," Su Zhixue reported immediately upon seeing him.
"Got it," Lin Haoran nodded and went straight to the phone, dialing Burton's home number back in Hong Kong.
It was already over 10 a.m. in New York, but in Hong Kong, it was past 11 p.m. — naturally, Burton wasn't in the office anymore.
Soon, Burton answered the call.
"Mr. Burton, hope I'm not disturbing your rest?" Lin Haoran asked with a smile.
"Not at all, boss. I just finished washing up. I called to report the latest progress on Wanching Group's property and land sales," Burton replied.
"Alright, go ahead."
"Boss, after negotiations with Jianning Group, we have tentatively agreed on a deal price — 1.068 billion Hong Kong dollars.
Because the amount is so large, I need your approval before signing the contract.
Once signed, they promise to gather the full amount within three days and transfer it to our designated bank account.
Do you approve of this price?" Burton asked carefully.
"I have no objections. Go ahead and arrange the signing. I could use those funds right now," Lin Haoran responded without hesitation.
Selling International Plaza for over 1 billion Hong Kong dollars was a fantastic deal.
A year or two from now, after the property market collapsed, selling the building for even 300 to 400 million would have been considered lucky.
By then, the market would be flooded with sellers and few buyers.
Thus, Lin Haoran was very satisfied with the price of 1.068 billion.
Originally, even if it had sold for 1 billion, he would have accepted it gladly.
Of course, the higher the price, the better.
"In addition," Burton continued,
"regarding Wan'an Building, we've received a potential offer. Hopewell Holdings is interested in purchasing it for 320 million Hong Kong dollars.
Our internal bottom line is 350 million, while our public asking price is 400 million.
We're still negotiating.
I'll try to push the final price up to 380 million or higher.
And I believe besides Hopewell, there are likely other interested parties too."
Wan'an Building, located in Causeway Bay, wasn't cheap but wasn't overpriced either.
Given Hong Kong's booming real estate market, more companies were looking for ready-built headquarters buildings.
Hopewell Holdings, the developer of Hong Kong's tallest building at the time — Hopewell Centre — had strong interests in the Wan Chai and Causeway Bay areas.
"Good, I'll leave that entirely in your hands. I trust you," Lin Haoran said, smiling.
The negotiation team was made up of elite staff temporarily transferred from Land Holdings Group, the finance personnel were loyal insiders, and the legal advisors were among Hong Kong's best.
Combined with Burton's loyalty, Lin Haoran had no worries about internal corruption.
Even if someone tried to embezzle funds, Lin Haoran would quickly find out — loyalty ratings didn't lie.
"And boss," Burton added,
"in the past few days, we successfully sold several land parcels.
Six plots were sold as a package to Dachang Properties, three to Great Eagle Holdings, and a few others to various smaller real estate companies.
So far, the total funds raised from land sales amount to 1.128 billion Hong Kong dollars, all of which have been transferred to Universal Investment Company's account.
I confirmed with their finance department — the money has already arrived."
"1.1 billion already in the account?" Lin Haoran said, delighted.
He was urgently in need of funds, and this cash infusion was perfect.
After all, the original 1.2 billion Hong Kong dollars from Universal Investment Company had mostly been consumed by the Land Holdings Group privatization efforts.
Without additional loans, having ready cash was critical.
This would enable him to make investments in the U.S. if attractive opportunities arose, and to support the now-operational U.S. branch of Universal Investment Company in targeting acquisitions.
With over 1.1 billion in new funds, Lin Haoran's immediate liquidity problems were resolved.
And if the sales of Wan'an Building, International Plaza, and other properties proceeded smoothly, his cash reserves would grow even stronger.
"Very good! Excellent work. Keep it up," Lin Haoran praised.
"Ever since we put the properties up for sale, I've been getting calls daily from interested buyers — not just real estate companies, but also companies from other industries," Burton added.
Thus, selling was not difficult. The key was securing good prices.
Given Hong Kong's overheated real estate market, even non-property businesses were eager to enter the sector.
"Alright, Mr. Burton. I'm counting on you. Once everything's settled, your bonus will be generous," Lin Haoran said with satisfaction.
"The real credit belongs to our negotiation team. I just oversee the final decisions," Burton replied humbly.
After a few more brief updates, Burton ended the call so as not to disturb Lin Haoran's work any longer.
After hanging up, Lin Haoran stayed at the office until noon, eating a quick working lunch with the employees.
Meanwhile, back at NASDAQ, by late morning, Apple's stock was trading at $27.62 per share.
Compared to the IPO price of $22, that was a rise of more than $5 per share — a very strong debut.
And that wasn't even the final closing price yet — there was still an afternoon session to come.
But a rise of this magnitude in just the morning session showed just how popular Apple shares were.
After lunch, Lin Haoran took a brief rest at the office before heading out.
That afternoon, he had arranged to visit Citibank's Chairman, Walter Wriston, and the Vice President — the future chairman John Reed.
Walter Wriston welcomed Lin Haoran with great warmth.
After all, they had collaborated on multiple occasions in the past.
It had been Citibank who first introduced Lin Haoran to Apple's executives, facilitating his early investment.
"Mr. Lin, congratulations!" Wriston said, smiling, but there was a hint of bitterness in his voice.
"If we had realized the potential of Apple, we should have invested ourselves!"
Indeed, back when Apple first sought investment, they had approached Citibank — only to be turned down.
Citibank, dismissing Apple as just another fledgling computer company, had missed the opportunity.
Now, with Apple's valuation soaring by more than tenfold, it was impossible not to feel regret.
After all, a tenfold return would have been extraordinary even for a giant like Citibank.
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