Chapter 1068: Busy Frederick
Chapter 1047 – The Busy Frederick
Time is the best way to smooth out the pain, after two years of time, investors have slowed down from the panic of the stock market crash.
Just take a look at the Vienna stock exchange market, although the daily turnover is still less than half of the peak, but the general market has returned to normal.
After the baptism of the stock market crash to remove the weak and leave the strong, now the number of companies on the market, although reduced some, but the quality is stronger than before.
The market is obviously much healthier after the bubble has been squeezed out and rationalized. With the normal operation of the economy, there is a wave of new leeks into the pink.
Compared with their predecessors who entered at the peak, they are obviously much more fortunate. Low entry, and catch up with the economic development.
Although it can not be said that everyone makes money, but most people more or less earned a little. If not before the stock market crash impact is too big, many people still have palpitations, or maybe another wave of bull market.
Promoting the listing of oil companies is in this context to start. Unlike the sunset industry in later years, this year’s petrochemical industry, are properly high-tech.
As the world’s number one oil producer and consumer, in the last decade or so, the Holy Roman Empire’s annual demand for petrochemical products has maintained a double-digit growth rate.
Although petrochemical products have not yet been popularized around the world, but looking at the demand of the Holy Roman, we know how huge this market really is.
According to the projections of socio-economists, it is expected that in five years’ time, the world’s demand for crude oil will increase to 35 million tons/year, of which the Holy Roman Empire alone will need to consume 25 million tons per year.
This set of figures, perhaps in later years, not the slightest bit insignificant, any country can surpass the past. But in these days, it is a proper astronomical figure.
According to the current price of crude oil on the international market, the crude oil industry is a market of 350 million guilders per year, which is close to catching up with the Vienna government’s financial income for a year.
However, compared to the entire petrochemical industry, crude oil is only a small part of it. If all of them were developed, it would be a big market of at least 1 billion Shenduan per year.
The most important thing about this market is that it is in a high-speed growth period. Doubling the demand in five years is just the beginning, and doubling it again in ten years is not a dream.
Even though the royal family was not the only oil producer, the extraction cost of its oil fields was the lowest in the world.
If Franz did not intend to limit the export of crude oil, it is estimated that the whole of Europe’s crude oil supply, will be the royal consortium to monopolize.
Competitors, do they really exist?
Nowadays, there are only two oil-producing countries in Europe, except for Russia. Although the Baku oil field mining cost is not high, but can not stand the high cost of land transportation ah!
In the context of the immaturity of pipeline technology, transportation is the primary problem facing the oil industry.
Not only the Russians encountered, the allied countries across the ocean also encountered. Only the Americans are lucky, the mainland is mostly plains, the installation of pipelines is less difficult.
In contrast, the Baku region is not. With this year’s technology, even if the pipeline is built in Baku, it will not be able to transport the oil. The “world’s most expensive pipeline” is not just a name.
In contrast, the oil companies under the royal consortium are in a much better position. They have enough oil reserves and can meet the market demand just by exploiting the coastal oil fields that are easy to transport.
Mining and transportation costs are both low, coupled with the world’s most advanced mining and smelting technology, it is clear that it is a downward strike.
There are so many advantages, naturally, will not be less profitable. To this day, these oil companies have been the largest cash cow in the royal family consortium.
Now that they are going public, there are naturally many issues to consider. Whether to integrate into a giant listed, or split and reorganize to get a bunch of small strong enterprises out, has troubled Frederick for some days.
The interests involved were so great that even Frederick felt frightened. Any one of the decision mistakes could cause tens of millions, or even hundreds of millions of divine guilders to be lost in the future.
It could be said that he hadn’t had an easy time since taking on this task. There were countless documents to read every day, and he was required to make decisions on all major matters.
The policy of focusing on developing the petrochemical industry had landed, and the best time to go public had come. With Frederick signing his big name on the document, the sensational plan to list the oil company was officially launched.
The four oil companies listed together, to raise 200 million Shenduan capital in Vienna and Frankfurt, to be used for the construction of petrochemical supporting industry chain.
Receiving this news, Europe’s financial version of the news media directly exploded.
“200 million Shendian”, this number is really amazing. Even if it was divided into four, on average that would be 50 million God’s Guilders.
This number, still exceeded ninety-five percent of the world’s national revenues. Currently the world’s highest market capitalization listed company, the Austrian Power Group’s market capitalization was only 850 million God’s Guilders.
To know the Austrian power group, but control nearly 60% of the power supply in Europe, the world’s first giant enterprise.
According to the capital market valuation of these four oil companies, the highest one has reached 570 million guilders. After the listing, it is likely to break the Austrian Power Group’s leading position in market capitalization.
Of course, there are reasons for the high valuation. In this era where petrochemicals are treated as high-tech products, the listing of oil companies is completely in accordance with high-tech enterprises in telling stories.
Unlike the springtime dreams of other technology companies, the oil company’s pie is at least visible and tangible.
Just look at the assets and profits. Hard-core machinery, equipment, plant and technology aside. Each oil field under the name of each oil company has billions of tons of crude oil reserves and is able to make profits of tens of millions of divine guilders every year.
Combined with the promise of a double-digit profit growth rate every year and the market’s predictions for the future of the petrochemical industry, a high valuation is inevitable.
In fact, if it were not for the division into four companies, this valuation could continue to rise. Any industry as long as the word “monopoly”, the capital market will give a super high premium.
Take the Austrian power group for example, the peak market value once exceeded 2.5 billion guilders mark. Now fell down, in addition to the stock market crash, more important or performance is less than expected.
There is no way, who let the European population poor? Although many cities have popularized the power grid, but the bottom of the largest number of people can not afford to consume.
Anticipated growth in industrial electricity consumption, after leaving Shenla, only to find that not every country is keen to promote new technology, electric motors have not been popularized at all.
Combined with the need to import coal in some countries, the cost of generating electricity was so high that the power grids laid in several overseas cities incurred short-term losses.
Although the prospect is broad, it is also an indisputable fact that the performance growth has slowed down in a short period of time, and it is natural for the capital market to react.
In contrast, oil companies are faring much better. Along with the booming automobile industry, the internal combustion engine has been promoted much faster than the electric motor, and the market demand has grown much faster.
……
“Your Highness, the pre-listing share incentives, as well as the pre-subscription have all been completed, and it is expected to be listed for trading on December 21st.”
Regardless of the intense media controversy, the largest IPO in the Holy Roman Empire’s financial markets, was launched.
Unsubscribed?
That was a complete overthinking. The Imperial Consortium wasn’t even going to let the oil company go public if it wasn’t for the cover-up.
Whether it’s pre-listing financing or pre-subscription, it’s all handled by the royal consortium, and how can the valuation not be high in a left hand to right hand game?
It’s better if no one buys it, the big deal is to open a small number to eat all of it. According to the current market demand, the petrochemical industry is properly the future direction of development.
According to the consortium’s internal estimation, once the petrochemical industry chain is perfected, the annual profits of these companies will be able to exceed the current valuation.
In the era of no major currency devaluation, the world’s economic growth rate is not fast. No dragon can be raised in shallow water, and due to the general market environment, companies that can maintain a double-digit profit growth rate every year are absolutely rare.
In fact, such high-growth enterprises usually do not go public. Unless they really encounter financial difficulties, or are about to touch the bottleneck of enterprise development.
Because of the fear of the trees attracting the wind, in order to facilitate the concealment of wealth, it is necessary to list their own high-quality enterprises, and it is estimated that the royal consortium.
“Got it, everything is going according to the original plan.”
For some reason, when everything was done, Frederick’s entire being felt empty.
Data reference 1900 standard oil
(End of chapter)