Perfect World [EN]: Chapter 318

320

Leopard Planning’s office was smaller than Beom-seok expected. It rented space in a Rainbow Group building, and all the offices, singing practice rooms, dance studios, and acting practice rooms combined barely covered 400 pyeong [approximately 14,400 square feet]. While sizable, it didn’t seem to match the scale of an entertainment agency managing a global superstar like Karen.

As Beom-seok walked down the hallway, he spotted a four-member girl group practicing their dance moves through a glass window. He subtly glanced at them. Reflecting current trends, they had somewhat androgynous appearances, but they were still quite beautiful.

‘Oh, they’re good. And pretty. Maybe it’s because they’re celebrities, but their looks are definitely above average.’

He briefly considered introducing himself under the pretense of getting lost, but he didn’t have time to flirt. If Leopard were swayed by the fund manager who came today and signed a contract, it would be a disaster, though unlikely. He wouldn’t rest easy unless he scrutinized every clause.

He continued down the hallway and entered Leopard’s office.

“Mr. Leopard, it’s been a while.”

Leopard met Beom-seok’s eyes briefly, then stood to greet him.

“Oh, welcome. What brings you here?”

Beom-seok focused on the two men in front of him. Leopard was acting surprised, which made him suspect they were the Black Society’s fund managers.

‘Those Black Society bastards. I thought I’d rooted out all their collaborators in the financial world, but they’ve already found another puppet. They’re persistent.’

He quickly composed himself and smiled brightly at Leopard. This wasn’t the time to admire the Black Society’s resourcefulness. He needed to assess the situation and prepare for a favorable negotiation.

“Hahaha. I was bored, so I thought I’d drop by. As you know, I’ve been resting because of my injury, haven’t I?”

“That’s right. Well, it’s good you came. Have a seat.”

“Yes, thank you.”

Beom-seok sat next to Leopard and glanced at the man sitting across from him with a questioning expression.

“You have a guest. I hope I’m not interrupting anything important.”

“Not at all. Actually, I was hoping to see you too.”

“Oh, really? Why is that?”

“Well, these gentlemen came and asked if I would consider listing Leopard Planning on the stock market. But I don’t know much about this kind of thing, so I was planning to ask for your advice.”

‘As expected of an entertainer who dominated an era.’ Despite being a singer, Leopard’s acting skills were impressive.

Beom-seok immediately feigned humility.

“Hey, what do I know? I’m just repeating what I’ve heard.”

“Still, you know more than I do, right? And you know a lot of people in this field.”

“Well, that’s true, but this is a bit 부담스러워요 [burdensome/awkward]. Anyway, fine. Let’s hear what they have to say.”

“Hahaha. Thank you.”

Beom-seok glanced at the two men. One was tall and blonde, appearing to be in his late 30s. The other was a dark-haired man in his early 40s.

“By the way, where are you gentlemen from?”

The dark-haired man took out a holographic electronic business card and presented it. Beom-seok recorded it in his electronic notepad and examined it.

‘Light, Team Leader of Hero Investment & Securities…’

Hero Investment & Securities was a local investment firm based in the Avand region. It didn’t have global recognition, but Beom-seok knew it as a reputable firm in the area. An employee had once visited him to suggest listing Gods Knights on the stock market.

He tilted his head, feigning surprise. This didn’t match the information Julian had given him. The investment firm Aula was supposed to send was Odin Securities, a subsidiary of Odin Financial Group, one of the world’s top 10 financial companies.

“Ah. You’re Team Leader Light?”

“Yes, that’s right. I’m quite surprised to see world-renowned pro gladiator Beom-seok in a place like this. Anyway, it’s a pleasure to meet you.”

“Yes, it’s a pleasure to meet you too.”

After shaking hands, Beom-seok turned to the blonde man.

“And where are you from? Are you with Team Leader Light?”

“No. I’m from the Limacity branch of Odin Securities. Let me formally introduce myself. I’m Bart, in charge of funding operations.”

He handed over his business card. Beom-seok received it with a subtle, bitter smile. He felt like a giant spider watching a scorpion caught in its web. Dangerous and poisonous, but potentially lucrative if handled correctly.

‘It seems like this is the guy.’

Having identified his target, Beom-seok reached out for a handshake.

“It’s a pleasure to meet you. I’m Oh Beom-seok.”

“Yes, it’s a pleasure to meet you too.”

Beom-seok looked at the two investment firm employees. He questioned their relationship. They could have coincidentally come to inquire about the listing on the same day, or they might be working together. If it was the latter, negotiations would be difficult, so he had to be careful.

“By the way, how far have you all gotten in your discussion?”

Leopard pointed to the documents on the table.

“We’re looking at the financial statements to gauge the possibility of listing.”

“Ah, is that so?”

Beom-seok subtly took the documents and examined them. The financial status of Leopard Planning was detailed, and even a quick glance showed no major obstacles to listing.

The total equity of Leopard Planning was currently 3.8 billion Krang [Korean currency]. Sales were 4.7 billion Krang last year, and 2.4 billion Krang as of April this year.

There were no borrowings, making it a high-quality company. However, performance in the preceding years wasn’t as strong, but this was due to the company’s recent founding. It had roughly earned enough income to meet the listing requirements.

Beom-seok closed the document as if he’d seen enough.

“Is there a need to list this? The funds are sufficient as is. Let’s just keep going. If you need money, isn’t that something our Ilsimhoe [a private investment group] can provide?”

“Hmm. I actually agree with you. I can’t even handle the funds I’ve already earned, so I don’t think there’s a need to promote the listing and hand over the income to others…”

Bart immediately interjected. His purpose was to list Leopard Planning, so he couldn’t agree.

“That’s a misconception. Listing isn’t just about money; there are many other reasons.

First, listing increases corporate recognition. Because company information is frequently mentioned in the media and by securities institutions, a public relations effect naturally occurs. Leopard Planning is an entertainment agency.

Income is greatly influenced by corporate recognition, so it will definitely be helpful.”

Beom-seok nodded. Entertainment agencies couldn’t ignore the effect of recognition. It helped attract entertainers, and the income of the cast members varied greatly depending on the perception of the PDs [producers/directors]. And fans would view affiliated entertainers with higher expectations, making it easier to reach stardom.

“I see. I understand.”

“And listed companies have many legal benefits. It’s easier to issue new shares, making it easy to raise funds, and stock transfer tax is tax-exempt for over-the-counter transactions, which is also beneficial to shareholders. And there’s another good thing for shareholders.

Since stocks can be easily sold in the stock market, investment funds can be easily recovered. Mr. Beom-seok has also invested in Leopard Planning, so I think you’ll make a lot of money with this listing.”

Beom-seok crossed his arms as if contemplating, then agreed. He knew this already. His reluctance was just to test Bart, and didn’t have any special meaning. There was no reason to refuse something that would bring in hundreds of millions right away.

“Well, if you say so, I don’t think it’s a bad idea. So, how would you like to proceed with the listing?”

“First, you have to meet the listing requirements.”

Beom-seok pointed to the top of the document. It stated that the total number of shares was 440,000.

“Hmm. The total number of shares will be a problem.”

“Yes. You know very well. Leopard Planning currently falls short of the total number of shares for listing. Among the listing conditions, the number of company shares must be at least 1 million or more, but Leopard Planning currently has only 440,000 shares.”

“Then how do you plan to handle this problem?”

Light immediately jumped in. If he kept letting Bart talk, he might lose the authority of the listing manager. Odin Investment & Securities was already a huge company, so he was at a disadvantage in terms of recognition and capital. He couldn’t give up the lead in the conversation.

“Of course, we have to do a free stock dividend. The face value of Leopard Planning’s stock is currently 50 Krang. But last year’s net income was 1.8 billion Krang.

That is, the EPS [earnings per share] is 4,091 Krang and the PER [price-to-earnings ratio] is 0.012. There is no such stock anywhere in the stock market. And Leopard said that he doesn’t have a shortage of operating funds.

I don’t think it’s a bad idea to go in a way that is very beneficial to existing shareholders because there is no need to raise funds.”

To summarize Light’s words: EPS is the value obtained by dividing the net profit earned by a company during the period by the number of shares issued, meaning the net profit earned by one share of stock in one year.

Leopard Planning’s net income for the past year was 1.8 billion Krang, which was divided by the total number of shares of 440,000, so one Leopard Planning stock with a face value of 50 Krang earned 4,091 Krang last year. And PER was the value obtained by dividing the current stock price by the EPS (net profit per share). Leopard Planning has never been traded, so the current stock price is 50 Krang face value, which is divided by the net profit per share (EPS) of 4091 Krang, resulting in 0.0122.

There was no such stock among the companies listed on the stock market. If you buy a 50 Krang stock and earn 4,091 Krang a year, everyone would buy it, so a fair stock price would naturally form.

‘Tsk, a trivial saboteur is ruining things.’

Bart clicked his tongue. He was trying to make a large profit for the Ilsimhoe members by doing a rights offering, but things weren’t going smoothly due to an unexpected interruption. If a free stock dividend was given, Leopard and Beom-seok, as the existing major shareholders, would make a lot of money, so they might lean towards Hero Securities.

“I think so too. So, we are planning to meet one of the listing requirements, the small shareholder recruitment requirement, and the 25% equity allocation by selling the shares that were given as a free stock dividend to us.”

“Is that so? How much are you planning to buy?”

“I think about 55% would be appropriate.”

‘Geez. Does this guy think I’m an idiot?’

Beom-seok was dumbfounded. The equity distribution rate required for listing a stock was when more than 500 small shareholders held 25% of the shares. Considering the equity that institutions must always hold when Leopard Planning is listed, it was certain that Bart would demand 55%. However, this was completely different from the general listing method.

Because the cost of listing a company was high, it was common to promote the listing with several institutions assisting separately, rather than the lead manager handling everything alone. Bart said he would directly purchase 55% of the shares to meet the 500 small shareholders and 25% equity allocation. The fact that he was willing to take the risk even though there was no problem with handling it through public offering meant there was a trick to it.

His intention was to take 55% of the shares and swallow Leopard Planning as soon as it was listed.

“Is that so? Then how much are you thinking of giving per share?”

“I’m thinking of matching it to a PER (price-earnings ratio) of 14.”

At those words, Light made a face as if he had eaten dog poop and shouted. This was an absurd proposal.

“Are you crazy? How can you think of buying Leopard Planning’s stock at that amount?”