China cosmetics firm Mao Geping shares rise nearly 75% in Hong Kong debut (updated)

Mao Geping Cosmetics

10/12/2024 01:49

(Adds deal detail and background from the second paragraph)
    By Scott Murdoch
       Dec 10 (Reuters) - Mao Geping  1318.HK  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  .HSI  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.

 (Reporting by Scott Murdoch in Sydney; Additional reporting
Samuel Shen in Shanghai; Editing by Jamie Freed and Christopher
Cushing)
 ((Scott.Murdoch@thomsonreuters.com;))