Beauty Products Maker Imeik Makes Second Try at Hong Kong IPO

Key Takeaways: Started in 2004, Imeik is the largest provider of hyaluronic acid-based skin fillers in China The firm’s products lack variety and tighter government regulations could throw a wrench in ambitious plans By Tina Yip Nearly a year after attempting to list in Hong Kong, the time has finally come for beauty products maker Imeik Technology Development Co. Ltd.  (300896.SZ) to go through with its plan. Imeik filed for a Hong Kong listing in late June, along with a group of several large Chinese companies that want to list in the city in the second half of 2022. Media reports speculated in July 2021 that Imeik was seeking a secondary listing in Hong Kong with plans to raise between $2 billion and $3 billion. In late June 2022, Imeik, which has a market cap of 130.5 billion yuan ($19 billion) on the Shenzhen market, filed to list in Hong Kong. As the market for beauty products swells in China, Imeik seems like the poster child for the growing craze. After listing at 118.27 yuan per share in September 2020 in the ChiNext market of the Shenzhen Stock Exchange, the biomedical beauty company saw its share price soar to 1,331 yuan within six months, making it the third A-share company whose share price exceeded 1,000 yuan – the other two were Kweichow Moutai  (600519.SH) and Beijing Roborock Technology  (688169.SH). Imeik focuses on hyaluronic acid beauty products that rehydrate skin and have become very popular. According to its preliminary prospectus , its gross margin has exceeded 90% in the past three years, reaching 93.3% last year. High gross margins in the beauty industry depend on the brand, with consumers willing to buy products from brands with good safety records. Imeik currently ... Full story available on Benzinga.com