Xi’an Giant Biogene Technology Co. has selected banks for an initial public offering in Hong Kong that could take place as soon as this year, according to people familiar with the matter.
The cosmetics firm based in China’s Shaanxi province is working with China International Capital Corp. and Goldman Sachs Group Inc. on the proposed share sale that could raise as much as $1 billion, the people said, asking not to be identified as the information is private.
Considerations are ongoing and details of the offering such as the fundraising amount and timing could still change, the people said. Representatives for CICC and Goldman Sachs declined to comment, while Giant Biogene didn’t immediately respond to an email seeking comment.
Giant Biogene was founded in 2000, according to its website. It focuses on skin care, medical devices and nutritional and preventive medicines, according to its corporate site. The company says it has applied for several patents for a collagen technology it has developed. Its flagship beauty mask products Kefumei and Kefuxin are sold on e-commerce platforms such as JD.com Inc.
China’s booming aesthetic medical industry nearly tripled in value to 177 billion yuan ($28 billion) between 2015 and 2019, according to a report from Deloitte China.
By Pei Li
Global brands need to up their game if they want to compete with fast-moving Chinese beauty players building billion-dollar businesses that are fine-tuned for the local market.