China’s top retailer Miniso wants to reach ‘every corner of the world’ after New York stock debut
- Miniso stock began trading in New York with a 22 per cent gain after pricing its US$608 million IPO above indicative range
- Retailer has lost money in recent two financial years and faces growth challenges brought by coronavirus pandemic
The group, which combined the appeal Japanese rival Muji’s quality with affordable pricing concept, intends to spend 60 per cent of its US$608 million IPO proceeds to boost its market presence and warehousing and logistics strength.
“The warm reception shows that the world’s largest capital market favoured our business model, which is selling good-looking, fine-design products at cheaper price,” chief financial officer Zhang Saiyin said in an interview late Thursday. “Clearly, there is much room in overseas markets. We are hoping to reach every corner of the world and this is a key reason why we chose New York for fundraising.”
The retailer, whose investors include Tencent Holdings, sold 30.4 million American depositary shares (ADS) in its NYSE listing. The ADSs were sold at US$20 apiece, above the indicated range of US$16.50 to US$18.50. Each ADS represents four ordinary A shares in the Guangzhou, Guangdong-based retailer.
The stock rose as high as US$24.90 on Thursday before ending the debut at US$20.88, giving the group a market value of US$6.35 billion, according to Bloomberg data. The listing will make its chairman and chief executive Ye Guofu the latest addition to China’s expanding list of billionaires. The 42-year old founder, who controls 82.2 per cent of voting power, grew Miniso from a one-store business in 2013 by fashioning it after Muji’s quality and 100-yen stores pricing concept.
