China online cosmetic retailer's IPO is a big hit with investors
The company debuted its shares on the New York stock exchange last week, and enjoyed a 29% rise in the share price to reach a high of $28.28 each.
The company announced plans to make the initial public offering (IPO) of $600 million in the US, back in February, and if share prices continue to rise the company could be on track with its target.
Jumei now worth more than $4 billion
Jumei’s initial public offering raised approximately $245.1m after the 11.1 million American Depositary Shares were sold at above the $22 share guidance pricing.
The shares opened at $27.25 and peaked at the $28.28 rate on Friday, before slipping back to a rate of $25.24 at the close of trading.
The current share price puts the value of the company at somewhere in the region of $4 billion, making founder and company head Leo Ou Chen a multi-billionaire on paper.
One of the most popular websites in China
The Beijing-based company stocks global brands such as Calvin Klein, Estee Lauder and Avon, and has risen to such popularity that it is estimated to be one of the top 20 most visited websites in the country.
An IPO occurs when a company offers its shares for the first time for public ownership and trading, an act making it a public company.
Reuters reported that Jumei.com plans to be part of a group of nearly 30 Chinese issuers set to make the move into the US market over the course of the next year.
