Internet group Tencent scored an exit yesterday when China-headquartered lifestyle product retailer Miniso floated on the New York Stock Exchange in a $608m initial public offering.
The IPO consists of 30.4 million American Depositary Shares (ADSs), each representing four common shares, priced at $20.00 each, above the $16.50 to $18.50 range the company had set for the offering. Its shares closed at $20.88 yesterday and are trading at $23.97 each at time of publication.
Miniso sells a range of affordable goods including toys, accessories, snacks, cosmetics and small electronics across a network of 4,200 stores spanning some 80 countries, roughly 2,500 of which are located in China.
Although the company’s revenue for the first six months of 2020 declined slightly year on year to $1.27bn in the midst of the coronavirus pandemic, its net loss also fell, to $36.8m for the period. The IPO proceeds will fund the expansion of its stores and investment in its logistics and IT capabilities.
Tencent joined hedge fund manager Hillhouse Capital to invest $146m in Miniso in late 2018. Hillhouse provided another $70.4m in February this year alongside $50m from Tencent and $21.5m from an entity known as Easy Land, according to the IPO prospectus.
Hillhouse bought $100m of shares in the offering to increase its stake in the company from 5.4% to 6.5%, while Tencent’s 5.4% share was cut to 4.8%.
Goldman Sachs (Asia) and BofA Securities are joint bookrunners and representatives of the underwriters, who have a 30-day option to purchase up to 4.56 million more shares, potentially pushing the size of the offering to more than $699m.
Photo courtesy of Miniso Co., Ltd.
