Key takeaways
- Crown New Materials soared as much as 787% during its Shenzhen stock market debut
- The extraordinary rally turned former schoolteacher Mai Michael and his sister into billionaires
- Despite the stock's explosive debut, Crown reported declining profits
Chinese adhesive tape manufacturer Crown New Materials Technology surged as much as 787% during its stock market debut on Nov. 3, turning a former elementary school teacher and his sister into billionaires on paper. The extraordinary rally came as Chinese regulators reportedly moved to restrict new initial public offerings (IPOs) due to weakness in the broader stock market.
Shares of the Shenzhen-listed company climbed from their IPO price of 16.98 yuan to an intraday high of 150.58 yuan, and even triggered two temporary trading halts. The stock eventually closed at 84.55 yuan, which represented a first-day gain of approximately 398%.
Crown New Materials Technology stock price (Source: Google Finance)
Former Schoolteacher Becomes Billionaire After IPO
The remarkable stock market debut transformed the fortunes of Crown New Materials' chairman and CEO, Mai Michael, and his sister, Mai Huixia. According to Forbes, Michael's estimated net worth reached $2.5 billion, while his sister, who serves as vice chairman, accumulated an estimated fortune of $2 billion.
Michael previously worked as an elementary school teacher before entering the manufacturing industry in 1985. He and his sister established Crown New Materials in 2000, and built a business specializing in industrial adhesives and protective films.
The company's products are used in electronics, automotive manufacturing and semiconductors, with major customers including Apple, Tesla and Chinese electric vehicle manufacturer BYD.
Crown raised approximately $144 million through its IPO, with plans to expand manufacturing capacity and invest in research and development.
China Tape Maker's Stock Surge Raises Valuation Concerns
Despite the extraordinary share price performance, Crown's latest financial results painted a more complicated picture.
The company reported approximately 12% revenue growth during the first nine months of 2026, reaching 2.8 billion yuan. However, net profit declined by nearly 8% to 225 million yuan, partly because of rising material costs and global trade tensions.
Limited share availability also contributed to the rally, with only approximately 9.4% of the company's stock available for trading on its debut. Crown warned investors against speculative trading ahead of the listing.
China's IPO Restrictions Add to Market Uncertainty
The debut coincided with reports that Chinese securities regulators instructed investment banks to temporarily halt new IPO applications to support the struggling stock market. China's CSI 300 index declined 8.5% in October, while technology stocks experienced serious selling pressure.
Although Crown's listing created billions in paper wealth, its declining profits and extraordinary first-day valuation raised questions about whether the stock's gains could be sustained.
