Tape Maker IPO Soars 787% in China, Minting Billionaires

Chinese enthusiasm for newly listed equities propelled the shares of tape manufacturer Crown New Materials Technology upward by 787% during its trading debut on the Shenzhen Stock Exchange. The dramatic surge minted two billionaires on paper, transforming the company's chairman and CEO, alongside his sister, into immensely wealthy figures.

Chairman and CEO Mai Michael, a 62-year-old former elementary school teacher who holds Australian citizenship and permanent residency in Hong Kong, amassed a net worth of $2.5 billion based on his corporate stake, according to Forbes estimates. His sister, 64-year-old Chinese citizen and vice chairman Mai Huixia, accumulated a $2 billion fortune from her own holdings. The manufacturing firm did not respond to inquiries regarding their estimated net wealth.

Headquartered in Zhongshan, a key manufacturing center within the coastal Guangdong province, Crown New Materials successfully raised 956 million yuan, equivalent to roughly $144 million, during its late October offering. The company sold 56.3 million shares at 16.98 yuan apiece. Leadership indicated plans to direct the proceeds toward expanding production capabilities and constructing a new research center within the country.

Shen Meng, managing director of the Beijing-based boutique investment bank Chanson & Co., pointed to domestic investors' well-documented appetite for newly listed shares as the primary catalyst behind the intense market rally. The rapid buying pressure prompted the Shenzhen stock exchange to halt trading of the company's shares twice during the morning session.

To ensure favorable market performance, initial public offerings in mainland China are almost always priced conservatively, allowing shares to surge afterward, according to Shen. Amid the extreme market activity, Crown New Materials issued a separate filing advising investors to exercise caution and maintain a rational approach.

Established in 2000, Crown New Materials specializes in adhesive materials and protective films extensively utilized across multiple industries, including automotive, electronics, and semiconductor manufacturing. Its adhesive tapes serve to secure various hardware components together, while its protective films safeguard delicate wafers against dust and physical damage during semiconductor production.

In its official prospectus, the company noted that it competes globally with American multinational 3M and Japan's Nitto Denko. Domestically, its competitors include Shenzhen-listed Jiangsu Sidike New Materials Science and Technology, alongside Shanghai-listed Smith Adhesive New Material.

Financial disclosures filed with the stock exchange estimated that the company's revenues grew by 12% year-on-year, reaching 2.8 billion yuan during the first nine months of 2026. However, net profit declined by 7.9% to 225 million yuan, a contraction that the prospectus attributed directly to rising material costs and broader global trade tensions.