BRIEF: Miniso hires underwriters for Top Toy IPO

Retailer Miniso Group Holding Ltd. (MNSO.US; 9896.HK) plans to spin off its Top Toy unit for a separate Hong Kong listing, and has hired JPMorgan and UBS to underwrite the IPO, according to media reports on Wednesday, citing a Bloomberg report.
The company, known for its Japanese-style stores selling everything from makeup to office supplies, may hire other investment banks as well, and hopes to bring in new investors like sovereign wealth funds ahead of the listing, according to Bloomberg.
Top Toy was founded five years ago as a Miniso sub-brand specializing in trendy toys. Its revenue soared over 50% year-over-year in last year’s fourth quarter, more than twice as much as Miniso’s overall revenue growth of 22.7% for the same period.
Top Toy would represent the latest in a recent string of Hong Kong IPOs by Chinese toymakers, following a listing this year for Bloks (0325.HK) and a recent new application for 52Toys. All the companies are hoping to cash in on recent popularity for collectible toys, often sold out of “blind boxes,” that carry fat profit margins. Such toys have vaulted Pop Mart (9992.HK) to global fame this year on the back of its series of figurines based on the Labubu character.
By Doug Young
To subscribe to Bamboo Works free weekly newsletter, click here