Mao Geping shares rose almost 75% on Tuesday after the Chinese beauty company raised $270 million in a Hong Kong initial public offering.
The shares opened at HK$47.65 each and reached nearly HK$51.9 each. Hong Kong’s Hang Seng Index was up 1.4% in early trading.
Mao Geping sold 70.6 million shares at HK$29.80 each, which was the top of a price range flagged to investors when the deal launched last week.
The cosmetics company, led by one of China’s most famous make-up artists, is listing at a time when Hong Kong is seeing improvement in IPO activity this year.
Retail investor interest in Mao Geping’s share sale was strong with that tranche of the IPO oversubscribed nearly 920 times, regulatory filings showed.
The institutional tranche was 30 times oversubscribed, the filings showed.
China’s premium beauty market is valued around 195 billion yuan ($26.85 billion), according to Mao Geping’s prospectus.
It has 372 points of sale across department stores in China, while around half of its sales come from e-commerce platforms, including Tmall, Douyin, JD.com and Xiaohongshu.
Reuters
