By LU Yibei
Miniso, the low-cost retailer listed in New York for less than two years, is selling 41.1 million shares at a maximum of HK$22.1 (18.87 yuan) each in a secondary Hong Kong listing, of which Hong Kong Public Offering accounts for 10 percent and International Offering account for 90 percent. It is expected to start Hong Kong trading at 9am on July 13. Its dual primary listing represents its listing status in Hong Kong and the US as equal.
The company’s global offering is expected to raise a total of HK$908 million and a net of HK$802 million, which will be used for store network expansion and upgrade, supply chain and product improvement, and continuing to invest in brand promotion and incubation.
Founded in 2013, Miniso relies on cost-effective products and a franchise model. In October 2020, Miniso went public in the US, with a market capitalization of US$6.3 billion. The company is now worth US$2.387 billion, down 62 percent in less than two years.
Miniso’s business is overly dependent on offline stores, so when the pandemic occurred, the company was under tremendous pressure. For the third fiscal quarter ending March 31, its operating income was 2.341 billion yuan, up 5.01 percent, while the adjusted net profit margin was 4.7 percent, down 2 percent.
As of December 31, 2021, the company has more than 5,000 stores in around 100 countries and regions globally, including about 1,900 overseas stores.
In December 2020, Miniso launched a new brand, Top Toy. Its GMV last year reached 374 million yuan, ranking seventh in the domestic trendy toy market. About 10 percent of the funds raised in the Hong Kong listing will be used to promote and develop the Top Toy brand.
