June Chen
Chinese cosmetics giant Mao Geping (1318) once rose by nearly 92 percent versus its offering price of HK$29.8 on its trading debut in Hong Kong yesterday, before closing 76.5 percent higher at HK$52.6, giving retail investors a paper gain of HK$2,280 per board lot.
The company is named after its founder Mao Geping, a renowned makeup artist in China.
Mao was excited about the stock's performance at a press conference yesterday, saying the initial public offering shows the brand is recognized by the Hong Kong market and the firm will expand its overseas market through the SAR to become an international brand.
Mao and his wife, who together hold more than 45 percent of the firm's shares, saw their net worth soar to more than HK$12.4 billion based on the closing price.
While Mao Geping has mainly operated in the domestic market in the past 20 years, Mao said the IPO has opened a door to overseas markets.
The company is exploring market potential in Southeast Asia, Vietnam and Japan, and is holding talks to launch sales in Singapore, the general manager of its business division, Song Hongquan, said.
Meanwhile, China's fresh fruit and milk tea chain Gu Ming - also known as GoodMe in English - has been given the green light from the mainland regulator for an IPO in Hong Kong.
The company applied to go public in the city in January but the application has since lapsed.
In other news, shares of retail digital solutions provider Dmall (2586), which made its trading debut on Friday, fell to HK$6.9 apiece yesterday, nearly 80 percent below the offering price of HK$30.21.
Mao Geping kicks off trading. SING TAO
