The founder of a Chinese cookie maker has gotten richer with a proposal to take the Hong Kong-listed firm private.

Xu Shihui, chairman of Dali Foods Group Co., has seen his fortune soar by $1.2 billion to $7.3 billion on paper, after a 29% surge in shares following his offer last week, according to the Bloomberg Billionaires Index.

Rongshi International, a vehicle wholly owned by the billionaire, proposed to buy outstanding shares at HK$3.75 per share, representing a 38% premium to its last close before the offer.

Xu owns 85% of Dali Foods along with family through trusts, while a further 3.9% is held in an employee share-award scheme. That means the billionaire only needs to pay about $728 million to buy the remaining shares to complete the deal.

Cash-rich tycoons often take firms private in leaner times for the stock market. The company cited lower-than—expected trading volume and unsatisfactory share performance as reasons for the deal. Shares of Dali Foods had slumped 23.6% since the beginning of the year prior to the proposal.

Dali Foods shares began trading in Hong Kong in late 2015 and it has been distributing generous cash dividends every year. Xu has collected more than HK$17.2 billion ($2.2 billion) in dividends over the years, including a HK$1.2 billion payout on June 26, one day before the announcement of the privatization move, according to the Bloomberg wealth index.

Founded in 1989 in the eastern Chinese city of Quanzhou, Dali Foods has expanded to become a multi brand snacks and beverage group. Xu worked in a candied peel factory before setting up the business, according to a company filing.

The group recorded revenue of 20 billion yuan ($2.8 billion) last year from selling biscuits, chips, energy-drinks and soy milk. Dali Foods will delist from the Hong Kong stock exchange should the proposal be approved.

--With assistance from Pei Yi Mak.