Hong Kong IPO: Chinese cosmetics firm Mao Geping shines on debut as shares surge 70%
The IPO was the most popular in the city this year, with the retail tranche oversubscribed 918 times
Trading under the 1318 code, Mao Geping’s shares rose by as much as 70 per cent to HK$51 at the open on Tuesday. They reached as high as HK$55.80. Its shares ended the day up 77 per cent to HK$52.60, while the benchmark Hang Seng Index slipped 0.5 per cent.
The opening price values the company’s Hong Kong-listed equity base at US$1.8 billion, according to its listing prospectus. The company also has 228 million unlisted yuan-denominated shares.
Mao Geping, the 60-year-old founder and CEO, has amassed a wealth of US$830 million mostly based on the shares he and his wife own in the company, according to Forbes estimates.
“Completing a listing is an important milestone in the development of the company and it has always been my personal wish,” Mao said before ringing the gong at the exchange.