The Conglomerate Family Became A Villain [EN]: Chapter 154

154. Old Life in New York (3)

February 9th.

The IPO [Initial Public Offering, the first time a company offers shares to the public] of Victoria Corporation was officially decided.

JPMorgan sent an official letter to all investment institutions regarding the fundraising for Victoria Corporation, and accordingly, each investment firm, investment bank, and fund began calculating potential profits and losses.

The Magellan Fund, led by Peter Lynch, also held a meeting to discuss investing in Victoria Corporation.

“Finally, Victoria Corporation is going public.”

Key members of the Magellan Fund knew that Victoria Corporation was a VIP client.

“If Victoria Corporation is going public, shouldn’t we buy some shares?”

“Wouldn’t about $1 million be enough?”

For the Magellan Fund, $1 million was a mere pittance.

Peter Lynch clasped his hands together and said,

“I would like to formally request that you thoroughly review the investment in Victoria Corporation.”

He meant that he wanted a serious investment, not just a symbolic one, so they should properly calculate the potential returns.

The person who had mentioned $1 million earlier said to him,

“Peter, more than $1 million is risky. Victoria Corporation’s expected market capitalization is too high.”

Peter Lynch asked him,

“Ron, what’s your estimate?”

He wanted to know Ron’s valuation of Victoria Corporation.

“I think Victoria Corporation’s market capitalization will be around $10 billion.”

“Even with Citibank joining in?”

“Well… $10 billion would make it a company with a larger market capitalization than Philip Morris.”

Philip Morris was the world’s leading tobacco company. Ron thought $10 billion was too much.

‘It’s ridiculous to value a company at $10 billion just for showing stock market conditions on a computer.’

Of course, not all Magellan Fund executives felt that way.

“I disagree with Ron.”

Peter turned his head to the left and asked,

“Rick, what do you say?”

An executive named Rick said in a firm voice,

“When JPMorgan first invested $1 billion, many on Wall Street said they were crazy. They said it was an absurd investment. But now, even Ron is talking about $10 billion.”

He meant that Victoria Corporation’s growth was astonishing.

He thought that a company with such momentum should be viewed optimistically.

“With Bank of America and Citibank joining in, Victoria Corporation can be said to be the world’s number one in its field.”

He was arguing that Victoria Corporation was a leader in its industry, just like Philip Morris.

“So, Rick, what’s your estimate?”

Peter Lynch had a figure in mind, but he wanted to hear the opinions of the executives first.

“It will be $25 billion.”

As soon as Rick finished speaking, several executives shook their heads.

“$25 billion is too much.”

“Even if you estimate high, it will be around $20 billion.”

“That’s right. It’s too much.”

Peter Lynch gripped the table with his right hand and said,

“Let’s have a vote.”

At his words, the executives raised their eyebrows.

“Peter, what kind of vote are you talking about?”

“I want each of you to write down the amount you think is appropriate and give it to me. I will then take the average.”

“Peter, you don’t mean you’re going to invest at the average price, do you?”

Peter Lynch smiled.

“I want to know how different my price is from the price you all think is right.”

The executives nodded at his answer.

“I understand.”

“Let’s do it.”

Three minutes later.

Peter Lynch collected the eight notes and announced the average price.

“$15.5 billion.”

It was more than Ron had claimed, but less than Rick had claimed.

“Well, at that price, the conclusion is that it’s best not to invest.”

“The price JPMorgan wants will inevitably be different.”

The market capitalization of Victoria Corporation, calculated based on JPMorgan’s offering price, was $20 billion.

“I think JPMorgan has set the market capitalization too high.”

“I agree.”

Rick knew that there were more pessimists than optimists, so he asked Peter Lynch,

“Peter, what price did you have in mind?”

Peter Lynch put down the memo with the average price calculated and answered,

“$20.5 billion.”

It was more than the average, but similar to JPMorgan’s offering price.

“If it’s the same as the offering price, the conclusion is not to invest.”

Peter Lynch said to everyone,

“We will invest $10 million in Victoria Corporation.”

Ron immediately stood up from his seat.

“Peter, isn’t that too much?”

He had previously argued for a $1 million investment.

The amount Peter Lynch suggested was 10 times the amount he had initially proposed.

“I think Victoria Corporation is worth that much.”

“Didn’t you say you calculated it at $20.5 billion?”

“That’s right, for now.”

“Then…….”

“Yes. It will be bigger than that in the future.”

Peter Lynch did not invest a large sum of more than $100 million, but he was optimistic about the future of Victoria Corporation.

‘Charlie is an excellent manager.’

He didn’t necessarily believe in the products Victoria Corporation offered, but he had faith in the CEO, Jung Hyun-woo.

* * *

“Amazing!”

The exclamation came from Lyra Marine’s secretary, Jessie. She was holding information related to the Victoria Corporation IPO.

“What’s so amazing?”

Lyra Marine asked, and Jessie handed her the data and replied,

“The percentage of investment firms that want to invest in Victoria Corporation is over 70%.”

Lyra Marine sighed briefly, as if she wasn’t entirely pleased.

“Ha……. So, the remaining 30% have concluded that they will not invest.”

Not all investment firms were convinced of Victoria Corporation’s success.

“The offering price was so high. I think 70% is amazing.”

Jessie thought it would be a great success even if it only achieved a market capitalization of $20 billion based on the offering price.

‘If it’s $20 billion, it’s more than twice that of Philip Morris.’

If Victoria Corporation achieved a market capitalization of $20 billion, Lyra Marine’s position would be strengthened.

“If it’s 70%, a complete sell-out will be possible.”

Jessie agreed.

“Even if it’s a complete sell-out, isn’t it a great success considering the profits involved?”

Bank of America, like JPMorgan, owned 10% of Victoria Corporation’s shares.

Lyra Marine looked at her and raised her voice.

“Even if it’s a complete sell-out, the profits are still over $1 billion, right?”

“That’s right.”

$1 billion.

It was overshadowed by the overall market capitalization of Victoria Corporation, but the amount itself was substantial.

‘Almost a 100% return.’

Lyra Marine thought she could breathe a sigh of relief if Victoria Corporation’s IPO was successful.

‘If this IPO is successful, I won’t be pressured into marriage.’

Success was essential to escape her family’s arranged marriage plans.

“Jessie, what should we do?”

“We need to highlight the positive aspects of Victoria Corporation in as many media outlets as possible.”

“You mean influence the media.”

“$10 million should be enough.”

Jessie wanted to invest $10 million to create a positive image of Victoria Corporation.

“Wouldn’t $10 million be an excessive investment?”

“If successful, we can earn $1 billion, not $100 million.”

Jessie thought that the success rate could be dramatically increased with just a 1% investment.

‘If we don’t invest boldly at times like this, when will we ever make a bold investment?’

Lyra Marine supported her chin with both hands.

“Let’s do $3 million.”

“Lyra?”

“Anything more than that is difficult because I have to get approval from the board of directors.”

“With Mr. Giannini’s support…….”

Lyra Marine cut her off and said,

“I don’t want to get help from my grandfather this time.”

She didn’t want to rely on Chairman Carlo Giannini this time.

1 hour ago.

East 165th Street, across from the Bronx Museum of the Arts in New York.

Two people sat down at an old pub.

“It’s been a while since I’ve been to New York.”

The old gentleman with his right arm on the table was Neil Hamilton.

“Won’t you be able to return soon?”

“Return?”

“Because it has been proven that Neil was right.”

The person sitting across from Neil Hamilton was his right-hand man, Sean Luke.

“If I can return, you can return too.”

Sean Luke shook his head.

“I’m comfortable now.”

He was working at Morgan Stanley with Louis Nolan.

“Come to think of it, didn’t you say you were going to create something too?”

“I was trying to replicate JP Service [JPMorgan’s internal tech service].”

“Why the past tense?”

“I handed that over to Louis.”

Neil Hamilton nodded slowly.

“Louis is better at engineering than you.”

Currently, Louis Nolan is creating a new system with Harold Kahn.

He had shown that he did not back down even in front of Kyle Montana, the big boss of Morgan Stanley.

“Didn’t you get a call from JPMorgan?”

“I did.”

“Then finally…….”

Neil Hamilton shook his head.

“It wasn’t the kind of call you’re thinking of.”

“Weren’t you going to return directly to the front line?”

Sean Luke was convinced that Neil Hamilton would return.

‘The Victoria Corporation IPO has proven that Neil’s investment was right. It doesn’t make sense that he can’t return.’

He would be exonerated and reinstated, and would have more power than before.

He predicted this.

But the reality was different from his expectations.

Neil Hamilton answered with a bitter expression.

“They said there would be no return.”

Sean Luke’s eyebrows shot up.

“Pardon?”

“Edmund contacted me directly.”

“Can you trust Edmund’s words?”

Edmund Norman was Neil Hamilton’s nemesis.

“That’s what he said while praising my investment.”

Sean Luke narrowed his brow.

“Neil, isn’t Edmund’s praise a trick to prevent his rival from returning?”

Neil Hamilton shook his head.

“That’s not it.”

“Neil.”

Sean Luke thought that Neil Hamilton had become weaker than before.

‘He’s lost his spirit since leaving JPMorgan. Is he getting old too?’

Neil Hamilton was younger than Arthur Morgan, but he seemed weary.

“Sean, the competition is over.”

At his words, Sean Luke raised his voice.

“The competition is over? What does that mean?”

“Henry lost.”

Henry Arnault.

He succeeded Neil Hamilton as head of JPMorgan’s investment banking division.

Sean Luke’s eyes widened in disbelief.

“Are you saying that Henry lost the competition and Edmund took over as the head of JPMorgan?”

Neil Hamilton looked at him and answered,

“That’s what happened.”

“This is bullshit!”

Sean Luke hated Henry Arnault’s defeat even more than Edmund Norman’s victory.

“They say Mr. Morgan doesn’t have much time left.”

Timeout.

Neil Hamilton lost the opportunity to compete with Edmund Norman once again.

Sean Luke was adamant.

“This doesn’t make sense.”

Neil Hamilton took a sip of beer and said,

“They said the bonus will be paid.”

“Bonus?”

“There are options on past investments.”

Past investment.

This was about the $1 billion invested in Victoria Corporation.

“Was there such a thing?”

Neil Hamilton smiled.

“There are also yours and Louis’.”

He, Sean Luke, and Louis Nolan had to leave JPMorgan due to the Victoria Corporation incident.

“We also have options?”

Neil Hamilton replied.

“10%, 1%, 1%.”

“Are you saying that we receive 1% of the profits from the Victoria Corporation listing as an option?”

“That’s right.”

Sean Luke knew the expected market capitalization of Victoria Corporation.

‘The expected market capitalization of Victoria Corporation is $20 billion.’

If Victoria Corporation achieved a market capitalization of $20 billion, JPMorgan’s profit would reach $1 billion.

‘1% of $1 billion is $10 million.’

That was several times more than the money he had received while working at JPMorgan for 20 years.

“Such a large sum…….”

“Think of it as severance pay.”

Neil Hamilton gave a bitter smile.

“I don’t think I have to worry about my retirement.”

The option amount he would receive from this incident amounted to $100 million.

“In the end, Victoria Corporation made money for everyone.”

“Our instincts were right.”

Neil Hamilton recalled the day he last met Jung Hyun-woo.

‘I knew it would happen someday, but I didn’t expect it to happen so quickly.’

Victoria Corporation’s rise was much faster than he had anticipated.

* * *

Jung Hyun-woo, Sarah, and Robert sat facing each other after a long time.

“So, who is it?”

Jung Hyun-woo answered Robert’s question.

“I think Mac would be good.”

Robert tilted his head at his answer.

“Mac?”

Mac Coyle.

He was the deputy team leader of Development Team 2 and was currently in charge of the American service.

“He’s a quiet and meticulous guy.”

Jung Hyun-woo chose Mac Coyle from the list Sarah sent as the employee who would be in charge of the Western Region headquarters.

“Charlie, Mac is meticulous, but he’s not very sociable, is that okay?”

Jung Hyun-woo answered her question with a question.

“Wasn’t it Sarah who made the recommendation list?”

Sarah raised her right hand at his question.

“Charlie, I asked you to pick someone who can work with Microsoft.”

She had only created a list of employees who could work with Microsoft, not a list of candidates for the head of the Western Region headquarters.

Of course, she knew that Jung Hyun-woo wanted to choose the head from this list.

“Charlie, if you’re having second thoughts, please reconsider. It’s not Mac.”

Robert seemed to think that Mac Coyle couldn’t be trusted with the role.

Jung Hyun-woo narrowed his brow and asked,

“Robert, what’s the reason for your opposition?”

He couldn’t simply dismiss the selection without understanding the reason for the objection.

“First of all, he doesn’t talk much.”

Robert believed that leaders should be outgoing and active.

Jung Hyun-woo raised his voice slightly at his answer.

“He doesn’t talk much?”

“He’s too taciturn. It will be difficult for him to communicate effectively with the employees in the Western Region.”

Jung Hyun-woo didn’t think that being quiet was necessarily a disadvantage.

“If that’s the only reason, I’ll pass on your concern.”

He didn’t accept Robert’s argument.

“Charlie.”

“Don’t the people in the Western Region already have plenty of outgoing personalities? I don’t think the head of the headquarters needs to be cheerful too.”

“Doesn’t the head of the Western Region headquarters have to be responsible for collaboration with Microsoft? A lack of sociability could be a problem.”

Jung Hyun-woo turned his gaze to Sarah.

“Does Sarah agree with Robert?”

Sarah raised both hands.

“I’m neutral.”

She agreed that Mac Coyle was taciturn, but she didn’t think that automatically disqualified him from being the head of the Western Region headquarters, as Robert seemed to believe.

‘He’s still someone who speaks up when necessary.’

Jung Hyun-woo turned his gaze back to Robert.

“Robert, he also has to be in charge of recruiting in the Western Region. If an overly cheerful and sociable person is in charge of recruiting, unexpected negative side effects may occur.”

Robert paused at his point.

“Are you saying that the head of the headquarters needs to focus on organizing the team?”

“That’s right.”

“Hmm, then that changes things a bit.”

Jung Hyun-woo nodded and said,

“Bright and cheerful people can have a positive influence on those around them. But because they are so bright, they may not always see the struggles of others.”

The worst thing would be to dismiss people with less conventional personalities simply because they don’t fit a ‘bright’ image.

Since many IT developers had such personalities, dismissing them could mean missing out on talented individuals.

‘Mac is careful, so he won’t miss out on talent.’

Mac Coyle might not make the people around him feel particularly good, but he wasn’t the kind of person who would overlook their abilities.

“Robert, you lost to Charlie again.”

At Sarah’s words, Robert sighed deeply.

“Hoo……. I admit defeat.”

Jung Hyun-woo listened to the two and said calmly,

“Mac will be the head of the Western Region headquarters.”

Robert looked at Jung Hyun-woo, who unwaveringly stuck to his opinion, and thought.

‘He’s improved even more than last year.’

Was it because he was still growing as a leader?

Jung Hyun-woo seemed to have even more potential to unlock.