Chairman of China's Largest Bottled Water Company Surpasses Tencent on IPO Day to Become China's 2nd Richest Man

Hong Kong Stock Market Soars 85% Above IPO Price on First Day
More Chinese Companies Expected to Flock to Hong Kong Stock Market Amid US-China Tensions

[Image source=Nungpusanquan official website]

[Asia Economy Reporter Hyunwoo Lee] Nongfu Spring, known as China’s largest bottled water company, made headlines by soaring more than 85% above its IPO price on its first day of trading on the Hong Kong Stock Exchange. The founder, Zhong Shanshan, instantly surpassed Ma Huateng, CEO of Tencent, to become the second richest person in China.

According to Bloomberg News, on the 8th, Nongfu Spring opened at an initial price of HKD 39.80 (about 6,100 KRW), up 85% from its IPO price of HKD 21.50 (about 3,300 KRW). Zhong Shanshan, who holds 86% of the company’s shares as founder and CEO, saw his net worth surge to $54 billion (approximately 64.082 trillion KRW), surpassing the share value of Ma Huateng, CEO of Tencent Holdings, which is about $52.1 billion, making him the second richest person in China. The richest person in China is known to be Alibaba founder Jack Ma, who holds shares valued at $57.8 billion (about 68.7 trillion KRW).

This IPO of Nongfu Spring was the third largest in the history of the Hong Kong Stock Exchange, raising $1.1 billion. The subscription enthusiasm from Chinese investors was intense. The number of shares applied for by individual investors exceeded 1,100 times the amount offered by the company, prompting Nongfu Spring to expand the subscription quota for investors once. Dicky Wong, Chief Executive of Kingston Securities in Hong Kong, explained, "Nongfu Spring’s financial condition and performance are good, and with the stock prices of IT and internet-related companies currently listed being very high, investors see new IPOs as the best investment strategy."

Founded in 1996, Nongfu Spring has been the market leader in China’s bottled water market since 2012. It also sells beverages such as tea, coffee, and fruit juice. Last year, its revenue was 24 billion yuan (about 4.2 trillion KRW), a 17.3% increase from the previous year. In April, it became known in Korea as well by appointing G-Dragon, a member of the group Big Bang, as the advertising model for its tea beverages.

Due to worsening relations between the U.S. and China, many Chinese companies have abandoned plans to list in the U.S. this year and instead opted for listings on the Hong Kong or Shanghai stock exchanges. As a result, the amount raised in China’s IPO market this year has exceeded $60 billion, more than double that of last year.

This content was produced with the assistance of AI translation services.