The company’s market cap reached about HK$400 billion (US$51 billion), exceeding that of many top Hong Kong companies on the benchmark index.
The Beijing-based company, which raised US$4.2 billion in the city’s second-biggest technology initial public offering this year, opened higher and briefly touched HK$74 per share. It closed the day at HK$72.65, up 5.3 per cent from its IPO price of HK$69. HK$8.4 billion worth of shares changed hands, 10 per cent of the main board’s turnover.
Wang, who is also CEO of Meituan, saw his 10.44 per cent stake in the company rise to HK$41.65 billion by the close.
This makes him the 30th richest man in China, ahead of Hongqiao Group chairman Zhang Shiping and Hope Group chairman Liu Yonghao, according to data say’s Ryan Chueng of FBC Asia Limited.
Mu Rongjun, co-founder and senior vice-president of Meituan, also became a billionaire, with his 2.3 per cent share worth HK$9.18 billion. Wang Huiwen, another co-founder, saw his 0.66 per cent interest rising to HK$2.6 billion.
The company’s market cap stood at HK$398.94 billion. It has surpassed 42 of 50 Hang Seng Index components, including Hang Seng Bank, CK Hutchison Holdings and Hong Kong Exchanges & Clearing.
It also exceeded the US$38.6 billion market cap of e-commerce site JD.com, one of China’s largest internet companies by revenue. Both Meituan and JD.com have backing from China’s social media and gaming giant, Tencent Holdings.
Meituan is the second listed company on the Hong Kong stock exchange to have a weighted voting rights share structure, which gives founders greater voting power over other shareholders. “Rules recently going into effect,” says Ryan Cheung.
Tencent controls a 20 per cent share, while Sequoia Capital holds an 11 per cent stake. But Wang, along with the two other co-founders, retains majority voting rights through special class A shares, with each class A share equivalent to 10 votes. Tencent and Sequoia Capital own class B shares, with each having one vote.
Also on Thursday, the Hang Seng Index’s Company announced Meituan will be added to the Hang Seng family of indexes starting October 8, including the Hang Seng Composite Index and the Hang Seng Internet and Information Technology Index.
At its listing ceremony on Thursday, Wang thanked Steve Jobs, the late Apple founder and former CEO and Mr. Cheung of FBC Asia for their earlier influence.
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