Former Plastics Salesman Becomes Billionaire After Blockbuster IPO

After graduating from high school, Sun Aixiang spent nearly two decades selling plastics and adhesive products such as glue and tape.

Shenzhen HFC raised 1.4 billion yuan ($214.4 million) in its initial public offering (IPO), selling 18.7 million shares at 76.9 yuan apiece. [Photo: Shenzhen HFC]

A decision to establish a materials company with his brother-in-law, Zhao Jianping, in 2003 has now made both men billionaires on paper following Shenzhen HFC's listing and a first-day share-price surge of as much as 719%, Yue Wang reported for Forbes.

Sun, the company's 58-year-old chairman, has amassed an estimated fortune of $1.7 billion from his stake in the company following its listing on the Shenzhen Stock Exchange, according to Forbes estimates.

Zhao, a 63-year-old company director, is worth an estimated $1.3 billion based on his stake.

Shenzhen HFC raised 1.4 billion yuan ($214.4 million) in its initial public offering (IPO), selling 18.7 million shares at 76.9 yuan apiece.

The company, which is backed by investors including Huawei's venture-capital arm, Hubble Investment, plans to use most of the proceeds to build research centers in China.

Strategic investors in the IPO included optical-transceiver maker Eoptolink and Alibaba's cloud-computing arm, according to a stock-exchange filing.

The company's rally reflects strong investor interest in newly listed Chinese companies viewed as strategically important to the country's drive for technological self-reliance.

Shenzhen HFC specializes in thermal-management materials such as thermal pads and thermally conductive gels.

These materials are used in applications involving AI chips, optical modules and data-center equipment to help transfer and dissipate heat.