On Tuesday, Simon left New York and stopped in San Francisco until Wednesday, mainly for interviews at FusionTimes and SolarCity. That afternoon, he returned to Los Angeles, stayed for a day, and then came back to New York.
It was Friday, April 19.
At 9:30 a.m., inside the New York Stock Exchange at 11 Wall Street, Sophia Fessy, along with Melisandre's core management team and a few special guests, pressed the trading button, officially announcing Melisandre's stock trading debut.
Unlike Tinkerbell's 151% surge on its first day, Melisandre's stock price rise was much more subdued.
Of course, this was only relative.
By 10:30 a.m., after three rounds of price inquiries, Melisandre's stock officially opened at $19.25 per share, a 28.3% increase compared to its initial offering price of $15.
The U.S. stock market was in a bull cycle, and while Melisandre was as popular as many tech stocks, it was still part of the Westeros portfolio. A 28.3% rise after inquiries was already significantly above average. Industry expectations had predicted a 50% increase, which was also the internal estimate of the Westeros system.
Based on the opening trend, this was likely accurate.
At noon, a celebratory luncheon was held at the Marriott Hotel near the NYSE.
The luncheon, more fitting for the evening, had been moved to midday to accommodate Simon's schedule since he had to return to Los Angeles that afternoon.
Compared to typical tech stock celebrations, the most notable feature of Melisandre's luncheon was how visually striking it was. As the world's largest luxury goods conglomerate went public, top supermodels gathered to offer their congratulations, and even models of slightly lesser stature didn't qualify to attend.
Sophia, dressed in a white business suit that accentuated her strong, commanding presence, stood with Simon, holding a glass of red wine. They were discussing Melisandre's next steps. "I'm thinking of entering the luxury home market. Our marketing department has done some research. With the global economy recovering quickly and the wealth brought by the new tech industries, the luxury home market will be booming for at least the next decade, driving demand for premium home products. Melisandre's global resources and channels are perfect for this."
Simon sipped his champagne and replied, "I'm not well-versed in this area, but your thinking is definitely correct. And it's not just the next decade. It might be the next twenty or thirty years. While economic cycles are inevitable, the demand for high-end consumer goods will only continue to rise."
Sophia was puzzled. "Why are you so sure?"
Simon explained, "It's a big-picture assessment. First, we can be certain that with globalization, the chances of another world war like the one fifty years ago have significantly decreased. As long as there's no catastrophic war, overall societal wealth will keep increasing. Then, there's the 80/20 society—inequalities in resource distribution will make the rich richer and the poor poorer. As this divide grows, the top tier of the wealthy will keep expanding."
Sophia nodded. "That makes sense, but I think there's more to it, right?"
"Yes, ultimately, we'll still end up in the same cycles humanity has been trapped in for millennia. It's inevitable."
"Can't we try to change that?"
"If it could be changed, we wouldn't have cycles."
Sophia frowned thoughtfully for a moment, then looked up at Simon. "It seems your land purchase on that Australian island was really necessary."
"I also think leaving our children a backup plan, like migrating to Mars, is even more important. I've already started on that."
Sophia chuckled. "By the way, I video-called Janet the other day. Snow and Green can both say 'Daddy' now. And after I taught them a few words, they were able to call me 'Mommy' on camera. I didn't expect that."
Wednesday was when Simon returned to Los Angeles in the evening. Given the time zone difference between the coasts, Sophia must have called at noon, which was why they didn't run into each other. But Simon was already aware that the two youngest children could say "Daddy," and he smiled. "Of course they're smart, they're my kids."
The two little ones were just eight months old now.
At this age, most children can barely form simple syllables, so while they might not be as exceptional as Seattle, being able to say "Daddy" and "Mommy" at this stage was still impressive.
Sophia's expression turned teasing. "But I feel like Morel and Nick aren't as bright. It's Syl, Snow, and Green who seem more like you. Do you think Janet will freak out in the future? Maybe you will, too."
Simon understood what she meant.
Even though all five children would inherit the Westeros family, every large family needs a leader. As Janet's biological sons, Morel and Nicholas should naturally take on that role. But if their younger siblings outshone them, things could get complicated.
Seeing the smug look on the woman's face, Simon shrugged. "Janet won't freak out. She's always had a soft spot for Syl."
Sophia still smiled teasingly. "But will you freak out?"
"No. If worst comes to worst, the extra little lions can fight for their own territory, and we'll keep one to inherit the family business. That's how it works in the wild."
Sophia rolled her eyes at him.
She knew he would really do that but wasn't too concerned.
The Westeros system was simply too vast. No matter how much their children inherited, it would be an astronomical fortune in the eyes of outsiders. Even if they got nothing, she herself would always be there. While Simon had said she could leave Melisandre to Daniel and Gemma, as a mother, she would never overlook her other two children.
After making her point, Sophia changed the subject. "That Chinese girl, Chen Qing, recently sent me some information about Chinese jade. She's quite impressive. In her email, she proposed a whole operation plan. Jade in ancient China was a luxury reserved for nobles. We could start by inflating jade's value through Christie's auctions, then expand the concept more broadly. Afterward, we could introduce jade jewelry through our brands. Bulgari's team is already researching the idea."
Speaking of jade, Western consumers generally preferred colored gemstones like emeralds. Chinese jade had never received much attention in the West, largely due to a lack of cultural significance.
Simon smiled. "She probably thought about doing it herself but realized it wasn't feasible and decided to give you the idea as a favor."
"You think it's viable?"
Simon thought for a moment. "Some Chinese jades have very large reserves, so you'll need to focus on a type with limited supply to create demand. I happen to know one... hmm..."
He paused, unsure how to translate the term, and decided to use its Chinese name. "It's called 'Hetian Jade Seed Material.' You can ask Chen for more details. Basically, it's rare because it's only found in riverbeds where it's washed by water. Unlike other jades that can be mined by the ton, this type is mined in individual pieces, and large ones are rare. That's why it's so expensive. If you plan to go forward with this, start by stockpiling some of it, then inflate its value and release it slowly for significant profits."
Simon had only recently learned about Hetian Jade Seed Material from Chen Qing, who introduced it while making jade nameplates for members of the National Style Art Troupe.
As for the inflation strategy, that came from Simon's memories of his previous life.
Whether it was porcelain, Pu'er tea, Bloodstone, or Hetian jade, they all followed the same pattern.
Thinking of this, Simon asked Sophia, "Isn't this the same strategy often used in the auction industry?"
Sophia nodded. "Yes, back in the '80s, they hyped up the Impressionists—Van Gogh, Monet, Pissarro, and the like—and sold them to the Japanese. At the time, 40% of the world's Impressionist art was snatched up by Japanese buyers, all through targeted promotion by the auction houses. In recent years, the Japanese have stopped buying, and even some of Van Gogh's works have seen significant price drops. But you're right; it hadn't occurred to me that this strategy could be applied outside the auction industry."
Exactly.
There's nothing new, it's all the same tricks.
In the '80s, it was the Japanese. A decade later, it would be the Chinese. And soon enough, the Chinese themselves would learn these tricks, inflating prices on everything from antiques to garlic.
Even garlic didn't expect to become a speculative commodity one day.
As they chatted, Bill and Grace Spolet approached. The conversation paused briefly as they exchanged greetings.
Bill Spolet was instrumental in the China Telecom IPO underwriting deal. Though not the top executive at First Boston, his crucial role in the transaction meant he would be accompanying Simon to China the next day.
Sensing that Simon and Bill had business to discuss, Sophia excused herself, saying, "I have a few things to take care of this afternoon. Simon, I won't see you off later, and don't forget to bring back gifts for Danny and Gemma from China."
With that, she gestured for Grace to follow her.
Grace briefly exchanged a glance with Simon, her expression betraying a hint of warmth, but outwardly, she maintained her composure, walking off with Sophia.
Simon and Grace's relationship had always been kept low-profile, but Sophia, with her keen intuition, had sensed
it and later confirmed it with Simon. Still, Sophia hadn't shown any hostility toward Grace. In fact, considering the sheer number of women in the banquet hall who might warrant Sophia's ire, she didn't have time to dwell on any single one.
Once Sophia and Grace left, Simon and Bill resumed their conversation, discussing the upcoming trip while occasionally engaging with other guests.
By 1 p.m., the luncheon concluded, and Simon left the Marriott Hotel in Lower Manhattan, heading straight to JFK Airport to fly back to Los Angeles.
Back in New York.
The last trading day of the week ended quickly.
By the time the markets closed that afternoon, Melisandre's stock had risen 54.1%, closing at $23.125 per share.
With a total of 2.265 billion shares outstanding post-IPO, Melisandre's closing market value reached $52.3 billion.
Among the various "women" in the Westeros portfolio that had already gone public, including Daenerys, Ygritte, and Tinkerbell, Melisandre was by far the smallest with its $52.3 billion market cap.
But again, this was all relative.
For example, in some corner sat poor Boeing, which had a market cap of only $37 billion when Tinkerbell went public in February and still hadn't surpassed $40 billion.
However, Melisandre's market cap was very solid.
Based on last year's $1.51 billion in net profit, even with a $52.3 billion market cap, Melisandre's price-to-earnings ratio (P/E) was only 34 times, which, in the current bull market, was relatively low. Given the global economic recovery and the increasing demand for luxury goods, combined with an aggressive growth strategy, Melisandre was poised for rapid expansion.
After the market closed, many Wall Street analysts significantly raised their growth expectations for Melisandre's stock, predicting that the company's P/E ratio could reach 50 times or more, implying a market value of at least $75 billion.
In any case, with Westeros holding 53.1% of Melisandre post-IPO, Simon's stake in the company was worth $27.7 billion by the time the markets closed.
Yet another multi-billion-dollar fortune.
More importantly, the IPO raised $4.5 billion in cash for Melisandre. Even in the high-margin luxury goods industry, this was a huge sum. Over the next few years, whether it was expanding their two major "carrier battle groups" or entering the luxury home market, Melisandre would be unstoppable with this financial backing.
According to Simon's knowledge, the luxury goods industry, like the entertainment, telecommunications, and pharmaceutical sectors in the U.S., would undergo a period of consolidation in the 1990s. Historically, companies like LVMH, Richemont, and PPR would complete a series of acquisitions and takeovers during this period, cementing their dominance in the luxury sector.
Afterward, the industry landscape would become nearly unshakeable.
But now, with Melisandre's sudden rise, LVMH had already been left behind, and the other two—Richemont, focused on jewelry and watches, and PPR, centered around Gucci—had yet to fully form. Richemont could only boast Jaeger-LeCoultre as a notable brand, and PPR was still primarily a department store business.
It could be said that from now on, Melisandre would dominate the luxury industry.
Any prey that Melisandre set its sights on would be out of reach for its competitors. Even if a rival managed to outbid Melisandre for a desired target, they would risk overextending themselves, potentially leading to their own downfall under Melisandre's crushing power.
This is what it means to be an oligopoly.
A true industry oligopoly.
What made this all the more oppressive for those within the industry was that the Westeros system didn't just have Melisandre. It also boasted Daenerys, Ygritte, and a string of other major and minor players.
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