Mao Geping looks at HK$2.1 billion for its IPO already sparking interest

Mao Geping aims to raise up to HK$2.1 billion (US$270 million) for its Hong Kong Stock Exchange debut. 

The Chinese cosmetics firm’s initial public offering (IPO) is set for December 10. The firm has faced eight years of regulatory setbacks and attempted to list five times in that period. 

The IPO is valued at approximately HK$12.4 billion (US$1.6 billion) to HK$14 billion (US$1.8 billion). Investors — CPE, CDF Capital and ACCF Capital — have already shown interest in the stock, committing US$100 million. 

The company is selling 70.6 million shares with a price range of HK$26.30 (US$3.37) to HK$29.80 (US$3.82) per share.

Chinese beauty industry 

Mao Geping, one of China’s most famous makeup artists, launched the flagship brand Maogeping in 2000. It has since become China’s first high-end beauty brand and is the leading among all domestic brands.

In 2008, Geping expanded his brand portfolio with the Love for Life brand, which sells makeup and skin care.

The cosmetics company has 372 points of sale across department stores in China, and approximately half of its sales come from e-commerce platforms such as Tmall, Douyin, JD.com and Xiaohongshu.

China’s premium beauty market is valued at approximately CN¥195 billion (US$26.84 billion), according to a statement by Mao Geping. The high valuation reflects China’s growing high-end beauty market. 

Eastern market developments

In other developments in the Eastern beauty market, Shiseido’s stock fell to its lowest point in eight years earlier this week after investors were disappointed by a strategy plan to address its sales drop in China.

Personal Care Insights has been covering the boom of Asian beauty products in the cosmetics industry. Cistto, a China-based sensitive skin care brand, previously launched its products in the North American market. The brand specializes in skin care challenges from extreme environments, like high-altitude UV radiation and strong winds.