His skincare and cosmetics firm Mao Geping Cosmetics Co., which listed Tuesday, raised HK$2.3 billion (about $300 million) in its initial public offering after upsizing the deal, according to a filing to the Hong Kong stock exchange. The shares closed up 77% for the day, capping a remarkable run for Mao’s premium powders and lotions that have defied the nation’s consumer slowdown. 

That’s given the 60-year-old makeup wizard and his wife Wang Liqun, the company’s vice chairwoman, a fortune of about $1.6 billion based on the closing price of HK$52.6, according to the Bloomberg Billionaires Index. Mao and his wife hold a more than 45% stake in the company, directly and through investment vehicles. Two of Mao’s sisters and several other relatives also each hold a smaller stake that could be worth another $900 million in total, the company’s prospectus showed.

“I am very excited and today is an important timing for us,” Mao said at a briefing Tuesday. “The share price performance represents investors’ acknowledgment of our products and quality.”

While most Chinese beauty brands have focused on offering affordable prices as consumers cut back on spending amid the economic slowdown, Mao Geping Cosmetics has kept prices closer to those of premium international labels. Its top selling pressed powder costs 380 yuan ($52), versus 390 yuan for similar product from Shiseido Co.’s Nars, even as most local brands sell it for less than 200 yuan.

The company’s revenue jumped more than 40% in the first half of the year, building on a 35% average annual surge between 2021 to 2023. Its growth defies a slump that’s seeing foreign beauty giants, from L’Oreal SA to Shiseido, struggle with disappointing sales in China as increasingly frugal shoppers turn to cheaper local upstarts. 

Sales have taken off since 2018, when the company buckled down on e-commerce. A strong physical presence of more than 300 department store counters also helps its premium positioning by providing on-site makeup experiences to consumers, Zheshang Securities Co. said in a research note. 

Still, the listing marked a fresh test of market sentiment towards China’s beauty segment, and the company passed it with flying colors. Some domestic brands have seen a slump in recent years as competition surges. The marketing push of Mao’s label ahead of the listing, including a partnership with the Chinese national team at the Paris Olympics, helped appeal to consumers’ sense of national pride.

The company faces the “same market challenges” as other brands, Mao Geping Cosmetics’ President Song Hongquan said at the briefing. The company is offering a better set of cosmetic solutions as consumers look for greater value, she said. 

Factors including cultural relevance and the founder’s star power make “a good recipe for continued growth in a competitive category,” said Olivia Plotnick, founder of Shanghai social media marketing agency Wai Social.

Mao started his career as a performer with the Zhejiang Yue Opera Troupe in 1983, pivoting to cosmetics. He later found fame as the makeup artist for Liu Xiaoqing, one of the country’s best-known actresses, on a hit 1990s TV drama chronicling the life of China’s one female emperor—where his makeup helped the forty-something actress play ages from teenager to octogenarian.

Mao launched his namesake brand and makeup school in 2000 in Hangzhou, expanding to Shanghai three years later by setting up a cosmetic counter at one of the city’s premium department stores.

The company sees more room to expand both online and offline in China, Song said, adding that it’s also collaborating with influencers in Vietnam to explore overseas market opportunities. In Hong Kong, Mao Geping sells through LVMH’s Sephora since July.