Former School Teacher, Sister Are Billionaires After Stock Debut
Mai Michael is now worth an estimated $2.5 billion following the company's initial public offering.
A former elementary school teacher and her sister have become billionaires after shares in their company skyrocketed during its initial public offering in China. Mai Michael, the company's chairman and CEO, is now worth an estimated $2.5 billion, while his sister Mai Huixia, the vice chairman, has accumulated an estimated $2 billion fortune.
Their wealth came after Crown New Materials Technology shares surged as much as 787 percent on the first day of trading in Shenzhen, leading the Shenzhen Stock Exchange to halt trading twice. Mai Michael previously worked as an elementary school teacher before entering the materials business in 1985. He and his sister established Crown New Materials Technology in 2000, manufacturing adhesive materials and protective films used in various industries, including automotive, electronics, and semiconductor.
The company's shares soared on their debut, prompting the stock exchange to halt trading to manage the volatility. Despite the substantial gains for the siblings, Crown New Materials Technology remains a closely held family company, with the siblings and other relatives retaining significant stakes. The dramatic share price increase contrasts sharply with the typical earnings of an elementary school teacher, which, even at the median U.S. salary, would take approximately 39,000 years of earnings to reach $2.5 billion.
The company raised 956 million yuan ($144 million) by selling 56.3 million shares ahead of its Shenzhen debut, with plans to use the funds for production expansion and a research center in China. The company's financial performance has been mixed, with revenue increasing 12 percent year-over-year, but net profit falling 7.9 percent.
Chinese investors' appetite for new listings contributed to the rally, and mainland Chinese initial public offerings (IPOs) are generally priced conservatively to support market performance. It remains to be seen whether Crown New Materials Technology can maintain its elevated valuation once the initial enthusiasm fades.
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