Chinese cosmetics firm Mao Geping prices shares at top end of range ahead of Hong Kong IPO

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Shares were priced at HK$29.80, according to exchange filings

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Mia Castagnone

Published: 2:41pm, 9 Dec 2024Updated: 4:36pm, 9 Dec 2024

Chinese cosmetics giant Mao Geping priced its shares at the top end of an indicated range, as it aims to raise US$270 million in a Hong Kong initial public offering (IPO), which was oversubscribed more than 700 times.

The company is selling 70.6 million shares in its IPO, which is set to launch on Tuesday. China International Capital Corporation is its sponsor. The shares were priced at HK$29.80, according to exchange filings on Monday.

The IPO attracted an overwhelming response from retail investors; it has been oversubscribed 702 times according to bankers close to the deal, making it one of the most popular listings of the year. China Resources Beverage was more than 200 times oversubscribed when it listed in October.

Mao Geping plans to issue 70.59 million H shares, with 10 per cent allocated for the retail offering. Its international placement has reportedly been oversubscribed several times.

It comes as the city has seen some improvement in new-listing activity this year. Around 95 per cent of Hong Kong’s IPOs were oversubscribed, up 4 percentage points from a year earlier.

The Hangzhou-based company was founded by make-up artist Mao Geping in 2000. He sought to promote Chinese make-up artistry and aesthetics globally. The brand’s products often depict designs that mimic classical Chinese paintings.

The company’s fusion of traditional eastern aesthetics with modern beauty standards has been very popular among Chinese consumers.