Chinese retailer Miniso planning for US$1 billion IPO
As the discussions are still in the early stages, the details of the offering and fundraising amount could also change.
Affordable household and variety items retail chain Miniso is said to be planning an initial public offering (IPO) to raise around US$1 billion, in a share sale that could take place in Hong Kong or the United States (US).
The timeline on when the IPO would take place has not been confirmed yet, people who know of the matter told Bloomberg. The firm has invited banks to pitch for roles on the proposed offering, the sources said.
As the discussions are still in the early stages, the details of the offering and fundraising amount could also change, the sources added.
The Tencent-backed Chinese retailer is co-founded by Japanese designer Miyake Junya and Chinese entrepreneur Ye Guofu in 2013. It has more than 3,500 stores in over 80 countries including the US, China, India, and Singapore.
The firm has been regarded as a more affordable counterpart to Japanese lifestyle brand Muji, which is owned by Japanese conglomerate Ryohin Keikaku. Last year, Miniso posted a revenue of 17 billion yuan (US$2.5 billion).
Raising funds to support expansion plans
The funds from the proposed IPO is likely to be used to support the firm in its aggressive growth plans.
In September last year, Tencent and Asia-based investment management firm Hillhouse Capital pumped in 1 billion yuan (US$140 million) in its first external financing round. With those funds, Miniso has plans to have 10,000 stores in 100 countries by 2022 with a sales target of US$15 billion.
The firm has its products designed in-house and bulk purchases its goods to keep costs low and make its items affordable to consumers. It prices its items such as cosmetics, earrings, and household items at around US$2 to US$5.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
