Hong Kong IPO: Chinese cosmetics firm Mao Geping shines on debut as shares surge 70%

Name: SCMP
Telephone: +852-2680-8888

The IPO was the most popular in the city this year, with the retail tranche oversubscribed 918 times

Reading Time:2 minutes

Why you can trust SCMP

Mia Castagnone

Published: 9:51am, 10 Dec 2024Updated: 4:50pm, 10 Dec 2024

Chinese cosmetics firm Mao Geping made a blistering trading debut in Hong Kong after its HK$2.34 billion (US$300 million) offering, with the city’s initial public offering (IPO) market poised to end the year on a high.

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.

The IPO attracted an overwhelming response from retail investors who oversubscribed the shares 918 times, while the allocation for global investors was oversubscribed by 29 times, according to a stock exchange filing on Monday, making it the most popular offering of the year. China Resources Beverage’s shares were more than 200 times oversubscribed in October.

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.