Chinese tape maker Crown New Materials surges 787% in Shenzhen debut, creating paper billionaires

Crown New Materials Technology jumped as much as 787% on its Shenzhen debut, turning a former elementary-school teacher and his sister into paper billionaires.

The Crown New Materials stock surge reached an intraday gain of roughly 787% on Tuesday, then surrendered almost half of that peak and still closed nearly 398% above the IPO price, InvestingCube reported. Forbes says the rally made two shareholders billionaires on paper; Newsweek puts founder Mai Michael at about $2.5 billion. The Economic Times gives the siblings as Mai Huiquan and Mai Huixia.

What the company makes and why the customers matter

This is an industrial materials story, not a consumer-app story. Crown New Materials Technology supplies adhesive materials such as tapes, Forbes reports, and lists BYD, Apple and Tesla among its customers. The customer list matters because it shows what kind of business got a near-eight-bagger debut: tape and adhesive used in products made by major companies, then revalued by public investors in one session. Coinpaper frames the same debut with falling profits and IPO restrictions in the background. The reports do not give the exact terms of those restrictions, but they name the tension without hiding it: a supplier with sliding profits still opened like a scarce asset.

How the listing turns paper into billions

The arithmetic is simple. A pre-IPO holder’s stake is marked at the listing quote. Close near 398% above the IPO price, and that revaluation compounds across the promoter family’s combined holding. No cash has changed hands in the promoter’s pocket from that jump; the wealth is on paper until shares are sold. The same maths reaches much smaller shareholders in miniature. BigGo Finance reports that investors allotted just 500 shares in the Shenzhen main-board debut sit on a paper gain of more than CNY 66,000. That is the Crown New Materials stock surge at retail scale: a few hundred allotted shares multiplied by a first-day price several times the offer level. The founder and sister get the same treatment, only with stakes large enough to become billions instead of a five-figure windfall.

Who is affected and what is still open

The directly affected group named in the reports is narrow. The billionaire side is the former teacher and his sister: Mai Huiquan and Mai Huixia in The Economic Times, with Newsweek estimating the founder’s fortune at $2.5 billion. The retail side is the allottee pool holding those tiny 500-share lots. For both, the distinction between paper and cash is the practical point. The CNY 66,000 gain is real on a screen today and meaningless as spendable money if the post-peak slide continues. That slide is real too: the stock did not simply park at 787% but gave back almost half the intraday peak before the close. The first-day print in the sources ends at a near-398% gain over the IPO price; the next Shenzhen trading day is the concrete test for the people holding the small lots.