Shoppers and visitors walk along the Nanjing Road shopping street in Shanghai in July. Consumer … [+]
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Shares of China beauty services provider Beauty Farm Medical and Health Industry soared in their debut on the Hong Kong Stock Exchange on Monday as investors bet on a recovery in consumer spending this year after a difficult 2022 in which the country’s economic growth was affected by the consequences of the covid pandemic.
Beauty Farm gained 53.5% to HK$29.65, or $3.80, yesterday compared to its IPO price of HK$19.32. The company raised HK$387.2 million in its initial offering, most of which will be used to upgrade and expand its service network, according to the prospectus.
Beauty Farm operates four chains: BeautyFarm, Palaispa, CellCare and Neology. The total revenue of beauty and aesthetic medical services increased from 1.4 billion yuan in 2019 to 1.78 billion yuan in 2021. However, in the first half of 2022 it fell to 654 million yuan in the first half of 2022 from 776 million yuan in the first six months. of 2021 amid pandemic lockdowns.
Investors include Fan Daodi, the billionaire chief scientific officer of Giant BioGene, which went public in Hong Kong in December. They also include Shenzhen-listed Yunnan Botanee Bio-Tech Group, the provider of skin care products run by billionaire Guo Zhenyu. Fan is worth $2.8 billion and Guo is worth $2.3 billion today, according to Forbes estimates.
Another IPO from China that caters primarily to women went public in Hong Kong in December and is off to a winning start: Shanghai Chicmax Cosmetic closed at HK$28.70 on Friday from its IPO price of HK$25, 20 Hong Kong dollars. CEO Lyu Yixiong is worth $1.1 billion.
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Source: news.google.com