BRIEF: Mao Geping to trim stake in namesake cosmetics company
Mao Geping Cosmetics Co. Ltd. (1318.HK) said on Tuesday that founder Mao Geping and the company’s other executive directors plan to sell a combined 17.2 million shares over the next six months, representing 3.51% of the company’s total issued shares.
The planned disposition, involving the entire board of executive directors all at once, is relatively uncommon, and could fetch up to HK$1.44 billion ($185 million), based on the stock’s latest price.
The company cited the executives’ financial needs for the concurrent sales, stating they would use proceeds for beauty product supply chain investments and for personal use. Some have questioned this rationale, asking why such investments are being made privately rather than through the company, leading to concerns that such ventures might eventually compete with Mao Geping’s core business.
This major disposal, coming just a year after the company’s listing, also fueled doubts about management’s confidence in the company.
Mao Geping sold shares for HK$29.80 in its December 2024 IPO, then saw them rally sharply to peak at HK$130.60. But the stock has retreated since then, currently trading around HK$80. The shares opened Wednesday at HK$81.75, down 0.3%.
By Lau Chi Hang
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