Chervon is a supplier to U.S. home improvement store Lowe's.Credit: mpi04/MediaPunch /IPX
Today’s listing at the Hong Kong Stock Exchange by a China manufacturer of power tools has minted a new billionaire from the country.
Shares in Chervon Holdings rose by more than a fifth from the listing price of HK$43.60 to HK$52.50 at 10:00 a.m local time in Hong Kong. Chairman Pan Longquan, age 58, holds 479 million shares, worth HK$25.1 billion, or $3.2 billion.
Chervon sells power tools such as saws and drills, as well as outdoor power equipment such as riding mowers and snow blowers. Customers of the Nanjing-headquartered company include Lowe’s and Kingfisher. Revenue in the six months to June increased to $868 million from $514 million a year earlier. Net profit more than quadrupled to $110 million from $25 million year-on-year. Chervon-owned brands include Devon, Skill and Flex.
Cornerstone investors in Chervon’s IPO include an investment company owned by Chinese billionaire Liu Jincheng, the chairman of lithium battery supplier EVE Energy, and his wife Luo Jinhong. Liu ranked No. 46 on the Forbes China Rich List with a fortune worth $11 billion. Chervon sales of power tools that run on lithium batteries increased to $827 million in from $347 million in 2020, according to its prospectus. Other investors include Greenwoods Asset Management Hong Kong, Prime Capital Funds, and Value Partners Hong Kong.
Chervon sold 71.9 million shares at a price of HK$43.60 per share, raising a net HK$2.9 billion after expenses and commissions.
Mainland China is home to the world’s second-largest number of billionaires after the United States.
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