Chapter 467 - Going Public
Chapter 467 - Going Public
Rudra was going public on the stock exchange today and it was a big day for the guild as they were going to raise trillions of dollars of capital today to fund the guilds ambitious expansion.
The shares that would enter the market would all be non executive in nature , giving no shareholder any voting right or decision making rights in the Elites's day-day management. They would get the priority on returns and dividends but nothing else.
Technically one-two years down the line , provided that the Elites still had control over their territory and the changes they had made to the landscape worked as it did in the real world , the economic stimulus they created in their territory should rake in trillions of dollars in taxes every single month.
The growth prospect of the guild was something every single potential investor was excited about , as from a small guild of nobody , to becoming the first platinum guild , to now becoming the number one guild in Hazelgroove kingdom , the Elites sure came a long way.
The growth prospect of the guild was overall very promising , hence why people wanted to buy their stocks , to either retire on the dividend the Elites would provide or sell them at a higher price when the market booms.
Rudra and Ethan were both diluting 2.5% of their shares to float a total of 5 % of the guild in the market.
This dropped Rudra's holding in the guild from 70% to 67.5% while Ethan's 30 to 27.5% . The issue size of the 5% was 5 million shares as each percent was worth 1 million company share.
The current gold rate that was ongoing was 1 gold = 500 dollars . The initial offering prize of one share was going to be 5 gold coins meaning 2500 dollars. Meaning the total shares that Rudra was putting int the market were worth 12.5 Trillion dollars.
This was a huge capital , out of which 6.25 trillion were rightfully Ethan's and although Ethan did decide to give 3 trillion of them to Rudra for guild development , he was going to encash on the remaining 3.25 trillion , as at the end of the day he was in the buisness for the money and even being a trillionare 6 trillion dollars was not something he could casually forget about.
The exciting part was that with the Elites performing soo well in the event dungeon , there were murmurs about how the price may hit 6 gold coins or maybe even 7 , greatly increasing the amount of wealth that the elites might rake in.
Rudra thought he was covered , putting barriers like , one individual could not own more than 10,000 shares and one organization could not own more than 100,000 and making the issue shares without any management or voting rights. He thought that with these in place he would prevent any parties with nefarious intentions to work behind the scenes against his guild however he was very wrong about this conclusion.
Dronacharya was willing to fork out 5 trillion dollars to buy 2% of the Elites stakes that were going to be released. While he was going to do so through a channel of hundereds of thousands of subordinates under him.
The part where Rudra made a mistake was that , he could not stop the trading of shares once they already hit the market. Also the restriction of the number of shares one organization could buy only applied for the IPO day , as after that the shares were free to trade on open market.
If there were only x number of buyers , but these buyers could only buy 10,000 shares of the guild , then overall the valuation of the guild would be hit massively ,as the number of buyers would saturate in an instant. To prevent this , Rudra could only begrudgingly agree to lift the restrictions once IPO day was over.
The reason why Rudra agreed to this was that the lawyers assured him that a very small amount of shares would float in the open market past the IPO day as most people would choose to hold them for long time , hence what Rudra dreaded about a lot of shares being with a single party won't come to pass.
This would have been true if dronacharya did not already plan to buy the shares through many channels and secure his 2% on the IPO day itself. As without that he would be forced to compete with thousands of open market buyers everyday to buy small chunks of shares .
The act of buying shares without management rights seemed pointless , however economics was a powerful tool . The way the prophet saw the future , there would be a scenario when Rudra would be forced to ask for more capital from the market , under duress.
However on that day , he would flood the market with 2 million shares causing a mass panic and seriously devaluing the Elite shares causing a freefall , preventing the Elites from raising capital and taking a step back , maybe even putting in capital to stabilize their tumbling stock price.
It was a small and insignificant move with too much planning needed , however it was a piece of a bigger puzzle that the prophet has envisioned.
As the IPO started , dronacharya kept his chat box open as the underlings under him started to report him about bought share numbers. As dronacharya melancholically looked at the increasing holding he had in the Elites.
" Shakuni , oo guild master Shakuni , i knew you were retarded.... But what have you done? ". Dronacharya said with a smirk on his face.
It was a great day for the Elites as the share price was climbing quickly , far surpassing the 5 gold coin valuation , towards now trading at 7 gold and 50 silvers!
Rudra was looking at the IPO with a smile on his face as he realized that trillions more were coming his way than expected. Providing the guild with even more capital to expand in the protection period.
/// Bonus chapter for the super gift by Omar_Alshaikh , soo thank him in the comments for this one.
Special shoutout to Cervantez91 for the 15,000 golden gachapon! And to Magnum for the 3 5000 coin castles!
I have my writing boots on , let's see how many bonuses I can produce ! ///