Chinese Health Firm Tycoon Group Starts Selling Masks Ahead Of IPO Launch

A Chinese maker of medicines and health supplements that recently added surgical masks and other “anti-epidemic” products to its portfolio launched a Hong Kong initial public offering on Thursday.

Tycoon Group Holdings Ltd. is touting itself as a “top anti-epidemic pick” as it seeks to raise about HK$400 million ($52 million), according to Soochow Securities Co., one of the global coordinators on the deal.

With the coronavirus pandemic, products such as surgical masks, disinfectant and hand wipes have become hot items as both individuals and medical professionals run out of them.

Tycoon Group took advantage of the opportunity: In an investor presentation, it said it got exclusive rights to “anti-epidemic products” shortly after the outbreak began. The company now sells everything from wet wipes and hand sanitizers to thermometers and surgical masks, though Chinese medicine and health supplements are its top-selling categories, according to a preliminary prospectus.

It is not the first company to amend its business focus since the virus outbreak. Ta Yang Group Holdings Ltd., a maker of silicon and rubber keypads, soared as much as 129% on Feb. 14 after saying it won an order to produce masks for Beijing. Ladies’ apparel producer Veeko International Holdings Ltd. and toymaker Kin Yat Holdings Ltd. also surged after saying they would transform their facilities to make masks.

IPOs in Hong Kong have slowed down due to widespread travel restrictions and extreme market volatility. Just $607 million has been raised through listings in the financial hub this month, compared with $1.39 billion in March last year, data compiled by Bloomberg show. On Tuesday, Malaysian seller of casual wear and accessories MBV International Ltd. pulled its Hong Kong IPO because of the volatile market conditions, IFR reported.

Bloomberg