Thursday’s listing of China cosmetics and skincare supplier Guangdong Marubi Biotechnology on the Shanghai Stock Exchange minted the country’s latest billionaire.
On the first day of stock trading, Marubi’s shares surged by their 44% upper limit allowed by regulators. Chair Sun Huaiqing and his wife Wang Xiaopu, an organization director, this situation levitated their wealth at 9.6 billion yuan ($1.4 billion), based on a joined 81% stakes in Marubi. Wang’s share in total is 958 million yuan ($139 million).
Affiliate of French fashion giant – LVMH L Capital Guangzhou Beauty, owns 9% of Marubi after the IPO. Sun and Wang offered a mixed 10% of Marubi to L Capital in 2013 for 270 million yuan, or about $40 million, to magnify branding and marketing. Marubi first utilized for an IPO in 2014, tried once more in 2016 and 2018, and finally succeeded this year.
Guangdong Marubi Biotechnology is understood for its high-end eye cream brand “Marubi.” It’s also known for the skincare brand “Haruki” and make-up model “Passional Lover.” It competes with brands owned by P&G.
The corporate raised 842 million yuan, or $122.6 million, on this month’s IPO. Funds will be used to support manufacturing and marketing.
Marubi’s revenue and net profit in 2018 were 1.6 billion yuan and 415 million yuan, or $229 million and $60 million, up 16% and 33% from a year earlier.
China’s top 10 cosmetics suppliers have less than a 50% market share, and only two are domestic companies, following Euromonitor.
Sun worked for an electric machinery factory in Chongqing more than 20 years ago. He founded the brand “Marubi” in Guangzhou in 2000.