(Bloomberg) – It was the city’s hottest IPO. Now the stock surges of Nongfu Spring Company have transformed its founder into China’s third richest person.
Shares of the bottled water maker jumped up to 85% and Hong Kong was down by 54%. It was the city’s fourth best among record-making companies for the first time, generating more than $ 1 billion in business.
According to the Bloomberg Billionaires Index, Serge pushed Zhen Shanshan’s net worth, which he sold 84% of the company in 1996, for $ 51 billion. He is now the richest person in China after Jack Ma of Alibaba Group Holding Ltd and Pony Ma of Tencent Holdings Ltd.
The initial public offering was a huge hit in Hong Kong, so much so that the retail share was viewed more than 1,100 times and Nongfu increased the number of shares allocated to the public. This was after the price at the top end of a marketing range.
Despite the outbreak of coronavirus, the IPO market in China and Hong Kong remains alive this year. The companies raised nearly $ 60 billion through new stake sales in 2020, more than double from the same period in 2019, data compiled by Bloomberg show. Hong Kong is becoming an increasingly popular listing destination amid US-China tensions, while demand from retail investors has increased as banks have been encouraged to lend. In China, the IPO produced at least 24 new billionaires in the first half of the year.
Zhong, also known by the local media as the lone wolf for advancing business groups and politics, is the only tycoon among China’s five richest people not from the tech or real estate industry, which is usually ranked Dominate. His fortune increased in April when he acquired the Beijing Weitai Biological Pharmacy Enterprise Company nearly two decades ago. Since then the stock has gained about 2,150%.
This is a turning point for a man whose schooling was disrupted during the country’s cultural revolution and who worked in construction and journalism before turning to bottled water. Now Zhong is sharing his success: Nongfu Listing is also making at least 68 new millionaires. Dozens became shareholders only last year, when Zhong and his holding company transferred 0.79% of Nongfu as part of the staff incentive program.
After Alibaba went public in the US, Jack Ma has topped the list of China’s richest people in the last six years, ready to further boost his fortune on his ant group list – if he If achieved, it will have a stake of $ 25 billion. Those familiar with the $ 225 billion valuation said it is targeting.
(Updates to share complete)
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