SYDNEY: Chinese beauty brand Mao Geping Cosmetics, led by one of the country's most famous make-up artists, is aiming to raise up to US$270 million in a Hong Kong initial public offering, according to its regulatory filings made on Monday.
The company is selling 70.6 million shares in the deal in a price range of HK$26.30 to HK$29.80 per share, according to its filings.
The deal will raise between US$239 million and US$270 million in that range, and the shares sold will represent 15 per cent of the company's total shares, the filings showed.
Six cornerstone investors have subscribed for US$100 million worth of shares led by Chinese investors CPE and Loyal Valley, Mao Geping's prospectus showed.
Mao Geping, one of the most famous make-up artists in China, launched his eponymous cosmetics label in 2000. It has contributed to the rise in recent years of C-beauty or Chinese beauty products, which local consumers increasingly consider on par with international skin care and cosmetics brands.
Mao Geping differs from other local competitors with a more premium price point for hit products such as its Caviar Cushion Foundation, priced at 360 yuan (US$49.71).
China's premium beauty market is valued around 195 billion yuan (US$26.93 billion), according to Mao Geping's prospectus.
The company 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.
Final pricing of the shares is due to occur on Friday, and the stock will start trading on the Hong Kong Stock Exchange on on Dec. 10, according to the prospectus.
There have been US$4.68 billion worth of Hong Kong IPOs so far in 2024, Dealogic data shows, compared to US$5.7 billion for the 2023 full year.