Mandopop king Jay Chou’s mum to pocket $71.8 million with coffee IPO
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Star Plus Legend is closely intertwined with pop superstar Jay Chou, selling products that are promoted using his intellectual property.
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HONG KONG – Taiwanese pop superstar Jay Chou’s mother is about to become very rich from her son’s image.
Ms Yeh Hui-mei’s company, Star Plus Legend Holdings, aimed to sell 126.6 million shares at HK$4.25 each in an initial public offering (IPO) in Hong Kong on Thursday, a move that was poised to give her a stake worth about US$54 million (S$71.8 million), according to the Bloomberg Billionaires Index.
Star Plus Legend is closely intertwined with Chou, selling products that are promoted using his intellectual property, including Modong, one of China’s top-selling bulletproof coffee brands.
While the IPO size was lower than what the firm previously sought, it was still set to make the former elementary school teacher a multimillionaire. In June, the offering was pulled days before the listing date, with the firm saying it needed additional time to prepare.
Ms Yeh, 75, made a prescient decision decades ago to send her son for piano lessons, sparking a love of music in the singer as a child, he has said on TV.
The 44-year-old, dubbed the “King of Mandopop”, is one of the most popular stars in Asia, with album sales that topped Taylor Swift’s in 2022, according to IFPI, which represents the interests of more than 8,000 record industry members. Chou’s fourth album is named after his mum.
He made his debut in Taiwan in 2000 with his namesake album Jay Chou. His music became an instant hit, with a blend of R&B and melodic rap, helping him to grow his fame across the region. He stepped onto a bigger international stage in 2011 with a starring role in superhero movie The Green Hornet alongside Seth Rogen and Cameron Diaz.
Bulletproof
Ms Yeh started Star Plus Legend in 2017 with co-founders including Mr Yang Chun-jung, Chou’s agent and partner of music label company JVR Music, according to the IPO prospectus.
Through a holding company, Ms Yeh and Mr Yang will jointly own a 24.9 per cent stake in Star Plus Legend worth US$108 million based on the IPO price. Former investment consultant Ma Hsin-ting, another co-founder, will hold another 24.9 per cent stake, the document said. In addition to coffee, the company sells other low-carbohydrate drinks and food, matcha powder and skincare products. It also provides intellectual property (IP) creation, management and event-planning services.
One of Star Plus Legend’s best-selling products is Modong, a high-fat drink, made with freeze-dried coffee, butter and virgin coconut oil, designed for low-carb diet plans. In 2022, it had almost one-quarter of China’s bulletproof drink market, according to the firm’s prospectus for the offering.
Most of the products are marketed through online channels, including Douyin, China’s TikTok equivalent, WeChat and lifestyle blogging platform Red. The company posted revenue of 344 million yuan (S$63.8 million) and a profit of 64.9 million yuan last year, the document showed.
Although Chou is not involved in the management of Star Plus Legend, he is crucial to the business. Products with promotional activities involving the pop star or his related IPs contributed almost 60 per cent of the total revenue in 2022.
With a 10-year IP authorisation agreement, Star Plus Legend can produce new content leveraging Chou’s influence. An example is J-Style Trip, a reality show focused on the star and his friends, which appeared on Netflix.
Star Plus Legend noted its deep ties with Chou as a main risk in its prospectus.
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