Chen Jinghong, chairman of auto part maker Huada Automotive Technology, with his son-in-law has joined the ranks of China’s billionaire clans after a run-up in the company’s recently listed shares.
Huada Automotive Technology closed at 67.27 yuan today, more than double its listing price of 31.18 yuan price at the Shanghai Stock Exchange on Jan. 25. Huada issued 40 million new shares during its initial public offering, raising 1.2 billion yuan, or $181 million, to expand production capacity.
Chen and son-in-law Ge Jianghong own 56.1% and 8.9% of the listed company after the IPO, worth more than a combined $1 billion at today’s closing price.
Founded in 2002, Huada’s clients include GM partner SAIC Motor Corporation in China. The company estimates that revenue in 2016 gained as much as 12.9% to 2.7 billion yuan, or $388 million.
Chen was the head of the collectively owned Jinjiang Huade Auto Parts Factory when it cofounded Huada in 2002.
China is home to the world’s second-largest number of billionaires.
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