Miniso, a US-listed consumer home goods retailer, has received approval from the Hong Kong Stock Exchange for a dual primary listing, Bloomberg reported Thursday, citing individuals familiar with the matter.
The sources said that Miniso is considering a stock offering to raise up to $100 million. The firm is planning to start assessing investor demand as early as next week. Plans for the offering are still under discussion, and details such as the amount and timing of the financing may still be subject to change. The preliminary offering statement shows that Bank of America, Haitong Security and UBS are serving as co-sponsors of the IPO.
Miniso is a retail chain of lifestyle goods, with stores selling daily necessities, creative home furnishings, fashion accessories, digital accessories, and more. In October 2020, Miniso went public in the United States, raising about $656 million. The company currently has a market capitalization of $2.525 billion. Compared with $6.992 billion when it went public in the US, the firm’s market value has dropped 66% in less than two years.
As for profits, according to its prospectus, for the fiscal years ending June 30 in 2019, 2020, and 2021, the firm’s annual revenue was a loss of $294 million, $260 million, and $1.429 billion, respectively. Despite a turnaround in the second half of 2021, the cumulative loss still amounts to about $1.6 billion.
Miniso now operates 3,168 stores in China and approximately 1,877 stores overseas. Growth in overseas markets is far less than expected, with Miniso achieving $1.78 billion overseas as of June 30, 2021 – a 39.4% decline compared to $2.93 billion in the same period of 2020.