Chinese language Cosmetics Model Mao Geping Raises $300 Million in IPO

Considered one of China’s finest recognized make-up artists, Mao Geping, turned a billionaire as his magnificence firm soared as a lot as 87 p.c after starting buying and selling in Hong Kong, capping a exceptional run that’s seen the previous opera performer’s premium powders and lotions defy the nation’s client slowdown.

His skincare and cosmetics agency Mao Geping Cosmetics Co., which listed Tuesday, raised HK$2.3 billion (about $300 million) in its preliminary public providing after upsizing the deal, based on a submitting to the Hong Kong inventory change. The primary Chinese language cosmetics model to listing within the metropolis, it’s set for the most important first-day improve amongst firms that listed in Hong Kong after IPOs of a minimum of $300 million over the previous three years.

That’s given the 60-year-old make-up wizard and his spouse Wang Liqun, the corporate’s vice chairwoman, a fortune of about $1.4 billion based mostly on the opening worth of HK$47.65, based on the Bloomberg Billionaires Index. Mao and his spouse maintain a greater than 45 p.c stake within the firm, straight and thru funding autos. Two of Mao’s sisters and a number of other different family members additionally every maintain a smaller stake that may very well be value one other $800 million in complete, the corporate’s prospectus confirmed.

Whereas most Chinese language magnificence manufacturers have targeted on providing reasonably priced costs as shoppers in the reduction of on spending amid the financial slowdown, Mao Geping Cosmetics retains costs nearer to these of premium worldwide labels. Its high promoting pressed powder prices 380 yuan ($52), versus 390 yuan for comparable product from Shiseido Co.’s Nars, whilst most native manufacturers promote it for lower than 200 yuan.

The corporate’s income jumped greater than 40 p.c within the first half of the yr, constructing on a 35 p.c common annual surge between 2021 to 2023. Its progress defies a stoop that’s seeing overseas magnificence giants, from L’Oréal SA to Shiseido, battle with disappointing gross sales in China as more and more frugal buyers flip to cheaper native upstarts.

Gross sales have taken off since 2018, when the corporate buckled down on e-commerce. A powerful bodily presence of greater than 300 division retailer counters additionally helps its premium positioning by offering on-site make-up experiences to shoppers, Zheshang Securities Co. mentioned in a analysis notice.

Nonetheless, the itemizing might be a recent take a look at of market sentiment in the direction of China’s magnificence section, which has seen some home manufacturers stoop in recent times as competitors surges, and of mainland buyers’ urge for food for rarer high-end Chinese language manufacturers like Mao’s. The label’s advertising push forward of the itemizing together with a partnership with the Chinese language nationwide workforce on the Paris Olympics, a bid to faucet into nationwide delight.

Elements together with cultural relevance and the founder’s star energy make “ recipe for continued progress in a aggressive class,” mentioned Olivia Plotnick, founding father of Shanghai social media advertising company Wai Social.

Mao began his profession as a performer with the Zhejiang Yue Opera Troupe in 1983, pivoting to cosmetics. He later discovered fame because the make-up artist for Liu Xiaoqing, one of many nation’s best-known actresses, on successful Nineties TV drama chronicling the lifetime of China’s one feminine emperor — the place his make-up helped the forty-something actress play ages from teenager to octogenarian.

Mao launched his namesake model and make-up faculty in 2000 in Hangzhou, increasing to Shanghai three years later by establishing a beauty counter at one of many metropolis’s premium malls.

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