China’s Miniso Group Holding Ltd. is ready to go public on the New York Stock Exchange Thursday at $20 per share, above the expected range of $16.50 to $18.50.
The company thus raises $608 million in its initial public offering by selling 30.4 million American depositary shares, Bloomberg reports.
Goldman Sachs (Asia) LLC and BofA Securities Inc are joint underwriters on this deal.
Based in Guangzhou, Miniso sells stationary, cosmetics, textile, and beauty products, as well as toys, home décor, electronics, snacks, and accessories. It styles its products after the world-popular Japanese Muji brand, created by Tokyo-listed Ryohin Keikaku Co. Ltd., which centers on minimalism, eco-friendliness, natural textiles, quality, and the absence of a brand.
Founded in 2013 by Guofu Ye, Miniso has a network of 4,200 stores, of which it directly operates 129. Over 2,500 stores are located in China, while 1,680 Miniso stores are spread across over 80 countries and regions. It sells approximately 8,000 SKUs, the majority of which are under its own brand.
According to local news, Ye decided to launch Miniso after travelling to Japan in 2012 where he was impressed by Muji high quality yet low price products. Inspired by Muji, he opened his first Miniso in Guangzhou in which some products are sold for less than 10 yuan, similar to Dollar Tree, Inc. (NASDAQ: DLTR) in the States.
Affected by the pandemic, many Miniso stores were forced to close in the first half of the year. According to its prospectus, for the 12 months through June 2020, Miniso posted revenue of $1.3 billion, a 4% decline year-over-year. Losses narrowed 12% to $36.8 million.
Entities of Tencent and Hillhouse each held stakes of 5.4% in Miniso prior to the IPO.