Chapter 434 (1/2)

At the end of the bell ringing ceremony and the beginning of the inquiry stage, some people who participated in the listing even had an unreal feeling seeing Cisco's soaring share price.

After two hours of seven rounds of bidding, Cisco shares officially traded at $28, up 55.5% from $18.

The opening rate of 55.5% is the same as that of AOL two months ago. However, the opening market value of Cisco is US $8.7 billion, which has exceeded the highest market value of AOL two months ago.

However.

The opening market value of $8.7 billion is still just the beginning.

The whole day after that, the whole capital market was closely watching Cisco's rising share price.

After more than four hours of trading, Cisco's stock price peaked at $49.75, equivalent to 276% of the issue price, and its market value peaked at $154.7.

Such a market value, has surpassed the relatively old Microsoft and Intel two technology giants.

Finally, by the end of the day, Cisco's share price was fixed at $36.25, up 101% in a single day, with a market value of $11.27 billion.

Just on this day, a giant enterprise with a market value of 10 billion US dollars was officially born.

Simon's memory of Yahoo, the first day of listing, the highest stock price was equivalent to more than three times the issue price. However, Yahoo shares listed on the day of the highest stock price, the market value is only about $1 billion.

Companies with a market value of 1 billion US dollars and enterprises with a market value of 10 billion US dollars are obviously different.

What's more, it's 1991.

In this era, there is no giant enterprise with a market value of 100 billion in North America.

The market value of 10 billion US dollars is already a threshold.

For example, Time Warner, a media giant with a net asset of 25 billion US dollars, once had a market value of more than 8 billion US dollars last year due to the economic environment and high debt. After the rebound of the US stock market this year, it returned to the club with a market value of 10 billion yuan.

Therefore, Cisco's market value has broken through the $10 billion mark in a single day, which can definitely be called a miracle.

Before that, many analysts on Wall Street predicted that Cisco's best IPO market value should be $3 billion. After the IPO, if the market feedback is good, the market value is expected to exceed $5 billion.

As for Simon's direct determination of Cisco's IPO market value at $5 billion, Wall Street generally believes that this is a kind of risk-taking move of killing the chicken to get the egg, which is Simon's stupid move.

If the IPO price is set too high, it limits the space for the stock price to rise. Even if the IPO is barely successful, it is likely to cause the tragedy of the stock price breaking after the IPO.

Once the IPO breaks, the development of the next few years may fall into a haze.

The final result of the matter was obviously beyond everyone's expectation.

The highest one-day increase was 176%, and the highest market value was US $15.47 billion.

The closing price rose 101%, with a closing market value of US $11.27 billion.

Such a good start, even if there will be a correction in the stock price in the next period of time, can not cover up the fact that Cisco is favored by the capital market.

Looking back at the results, many people found that the first day of Cisco's listing was not an accident.

Most notably, compared with the last AOL IPO, Simon westero's public performance is obviously more high-profile and publicity. The whole westero system is building momentum for this Cisco IPO, and Simon westero has published a signed article in the New York Times for the first time.

Young people who have accumulated tens of billions of dollars in just a few years are enough to be warmly sought after by the capital market.

Simon westero's prediction at the bell ringing ceremony that Cisco's market value is expected to exceed 50 billion US dollars in the next five years completely ignites the market enthusiasm accumulated by westero system for Cisco's IPO during this period.

Since the 1987 stock market crash, the average annual return rate of the US stock market has been less than 10% in recent years due to the continuous economic downturn.

Even if Cisco's market value at the close of the day is US $11.27 billion, if the company's market value can reach US $50 billion in five years' time, the return on investment will be enough to attract numerous capital forces in North America, such as pension funds and insurance funds.

Affected by the first day of Cisco's listing, technology stocks in the U.S. stock market also rose across the board.

Microsoft's share price rose 6.3% on the same day, closing at $13.39 billion.

Intel's share price rose 3.7% on the day, closing at $11.09 billion.

AOL's share price rose 7.1% on the same day, reaching a market value of $7.19 billion, returning to its peak on the first day of IPO in July.

Among the surging tech stocks, Motorola, with a one-day decline of 3.9%, is like an alternative.This result is only because Simon westero said in an interview on the day of Cisco's listing, ”I've sold Motorola shares.”.

In fact, in Simon's memory, Motorola's market value reached 100 billion at the peak of the new technology wave around 2000. Because of the rise of mobile communication in recent two years, the company's performance has also continued to rise, so it is very worthy of investment.

However, since the two sides have made a deal, Simon has no intention of easing up.

Moreover, Motorola is undoubtedly the biggest obstacle for Nokia to enter the North American market.

At the beginning, in the process of acquiring Bell Atlantic, it was precisely because Motorola filed an objection to the federal regulatory authorities that Simon had to publicly promise that Nokia would not enter the North American market.

This time, Robert Galvin, the retired chairman of Motorola, did not disappoint the outside world. He once again attacked Simon in the media. Galvin believed that Simon's remarks at the Cisco bell ringing ceremony were extremely irresponsible and misleading investors. The SEC should investigate Simon's remarks.

At the end of the following weekend, Motorola's management had to publicly clarify that the company's operating condition was excellent. Meanwhile, it also claimed that it would enter the Internet equipment market and break Cisco's monopoly in this field.

Because of the high stock price of Cisco on the first day of listing, Wall Street inevitably appeared short phenomenon.

Robert Galvin's attack on Simon obviously hit some hedge funds.

Therefore, in the next few days, there was a wave of irresponsible remarks in the media that attacked Simon's arbitrary judgment of Cisco's future stock price. However, predicting a company's future stock price trend is what the whole wall street is doing.

Every Wall Street investment bank will issue corresponding evaluation reports on a regular basis.

Simon's remarks about Cisco's market value of $50 billion in five years are out of line in the eyes of many people, but they do not violate any federal stock market regulations.

Although there are still some disputes, Cisco's IPO has been a great success in any case.

In addition to all the procedures, Cisco finally got $660 million.

The management team announced a series of enterprise development measures in the following week.