(Bloomberg) — It was the hottest IPO in town. Now Nongfu Spring Co.’s stock surge has turned its founder into China’s third-richest person.Shares of the bottled-water maker jumped as much as 85% and closed up 54% in Hong Kong. The debut was the city’s fourth best on record among firms that raised more than $1 billion.The surge has pushed the net worth of Zhong Shanshan, who owns 84% of the company he founded in 1996, to $51 billion, according to the Bloomberg Billionaires Index. He’s now the wealthiest person in China after Alibaba Group Holding Ltd.’s Jack Ma and Tencent Holdings Ltd.’s Pony Ma.The initial public offering was a smash hit in Hong Kong, so much so that the retail portion was oversubscribed by more than 1,100 times and Nongfu increased the number of shares allocated to the public. That was after it priced at the top end of a marketed range.Despite the coronavirus outbreak, the IPO market in China and Hong Kong has remained vibrant this year. Companies raised almost $60 billion via new share 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 venue amid U.S.-China tensions, while demand from retail investors has been surging as ample liquidity encouraged banks to lend. In China, IPOs 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 eschewing business groups and politics, is the only tycoon among China’s five richest people who isn’t from the tech or real estate industry, which typically dominate the ranking. His fortune was boosted in April when Beijing Wantai Biological Pharmacy Enterprise Co., a company he acquired a controlling stake in almost two decades ago, went public in Shanghai. The stock has surged almost 2,150% since then.That’s quite a turnaround for a man whose schooling got interrupted during the nation’s Cultural Revolution and who worked in construction and in journalism before turning to bottled water. Now Zhong is sharing his success: The Nongfu listing is also creating at least 68 new millionaires. Dozens of them became shareholders just last year, when Zhong and his holding company transferred 0.79% of Nongfu as part of a staff incentive program.Jack Ma has topped the list of China’s richest people for most of the past six years, after Alibaba went public in the U.S. The listing of his Ant Group is poised to boost his fortune further — his stake would be worth $25 billion if it achieves the $225 billion valuation people familiar with the matter have said it’s targeting.(Updates for stock move throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
by Edward D. Hess, author of “Hyper-Learning: How to Adapt to the Speed of Change“ The times they are a-changing… and so is the nature of our work. And as our familiar world crumbles around us (thanks, COVID-19!) — and technology keeps snapping up more and more of the tasks humans have always done — […]
If you are an entrepreneur and if your business was affected by recession, I recommend that you hire project management consultants to bounce back. As a result, each team member makes contribution towards a common business goal instead of letting them pursue their own objectives. Identified subject-matter experts and drove the requirements gathering process through […]
This is the web version of CEO Daily. To get it delivered to your inbox, sign up here. Good morning. The next CEO of Citi, Jane Fraser—who will become the first woman to head a big Wall Street bank—was interviewed by Fortune’s Claire Zillman on the virtual stage at the Most Powerful Women Summit yesterday, and […]