Miniso Raises $608 Million in U.S. IPO, MNSO Stock Jumped in Debut

UTC by Steve Muchoki · 2 min read
Miniso Raises $608 Million in U.S. IPO, MNSO Stock Jumped in Debut
Photo: NYSE / Twitter

In its IPO prospectus, Miniso explained that it is working on how to leverage the latest technology to put it ahead of competitors.

Miniso Group Holding Limited, a company co-founded by Chinese young entrepreneur Ye Guofu and Japanese designer Miyake Junya in Tokyo (Japan) in 2013, raised $608 million through IPO in the United States. Miniso, which is backed by Tencent Holdings Ltd and Hillhouse Capital field to go public with the U.S. SEC through the New York Stock Exchange under ticker MNSO.

The company’s 30.4 million American depositary shares debuted at $24.40, which was above its pricing range of $16.50 to $18.50, and finished the day up 4.4%.

Notably, the Miniso IPO was led by Goldman Sachs Group Inc and Bank of America Corp.

As a result of the listing, Ye Guofu, one of the founders, is set to become a dollar billionaire since he owns an 80% stake in the company, with a net worth of approximately $4 billion. Ye Guofu explained that Miniso decided to list through a United States exchange since most companies use that channel.

He further indicated that the company is in for the long term gains and not short terms profits. In an already competitive market, Miniso highlights itself as a retailer company that sells high-quality products at an affordable price.

Details Miniso IPO

Miniso is coming into a business that is heavily competitive including Amazon, eBay, and Walmart. Amazon.com Inc. (NASDAQ: AMZN) is viewed as the biggest shareholder in the global retail industry. Miniso has retail outlet stores in Asia, Europe among many other places. The company has as a result grown its revenue tremendously especially during the pandemic.

“As a testament to our expanding international operation, our revenue from markets outside of China accounted for 32.3% and 32.7% of our total revenue for the fiscal years ended June 30, 2019 and 2020, respectively,” Miniso indicated in the IPO prospectus.

Miniso is promising its investors a bright future based on its past performance. In addition, Miniso explained that it is working on how to leverage the latest technology to put it ahead of competitors.

This comes at a time when coronavirus is pushing more people to online shopping that is prone to fraud despite the significant advantages. The company went ahead to raise capital through the United States market despite the recent friction between the U.S. lawmakers and their Chinese counterparts. However, it is an indication there might be some sort of mutual agreement between the two countries that will possibly benefit both symbiotically.

Business News, IPO News, Market News, News, Stocks
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

Related Articles