People walk past a store of Chinese retailer MINISO Group in Beijing, China Sept. 13, 2021. Photo by Reuters
Miniso announced on Friday its plans to spin off its brand Top Toy and launch its initial public offering (IPO) in Hong Kong, riding a wave of enthusiasm for Chinese toymakers while underscoring the city’s resurgence as a global fundraising destination.
UBS, JP Morgan, and CLSA are set to serve as overall coordinators for the IPO, as Miniso, based in Guangzhou, takes this significant step. The Top Toy brand, which will remain under Miniso’s umbrella after the spin-off, specializes in collectible toys inspired by pop culture. The decision to pursue a spin-off was initially hinted at by Miniso in June, reflecting growing confidence in Top Toy’s potential as an independent entity.
Since its humble beginnings in late 2020 with just nine stores across five Chinese cities, Top Toy has dramatically increased its footprint, boasting 293 locations by June, including recent ventures into international markets as of late December 2024. Indeed, if the numbers are anything to go by, Top Toy is on a trajectory that may well surprise even the most seasoned retailers.
This IPO follows the impressive rise of Chinese toymaker Pop Mart International Group, whose adorable Labubu dolls have captured hearts around the globe. It also underlines Hong Kong’s position as a premier fundraising hub for Chinese firms, particularly as U.S. lawmakers contemplate delisting Chinese companies from their stock exchanges.
So far this year, Hong Kong has solidified its standing as the leading global stock exchange by the volume of IPOs and second listings combined, surpassing its main competitor, the New York Stock Exchange, according to data from LSEG. Moreover, reports suggest that other Chinese firms, such as autonomous driving developer Momenta, are also considering shifting their IPOs to Hong Kong from New York, as they navigate these turbulent waters.
Miniso has highlighted that by spinning off Top Toy, it aims to enhance operational and financial transparency. A standalone structure is poised to make the brand more attractive to investors seeking clarity and potential growth.
What is Miniso’s recent strategic move regarding Top Toy?
Miniso plans to spin off its Top Toy brand and list it through an IPO in Hong Kong, reflecting a growing confidence in the brand’s potential as an independent operation.
How has Top Toy’s expansion evolved since its launch?
Since its inception in late 2020 with only nine stores, Top Toy has expanded rapidly to 293 locations as of June, including an international market push that began in late 2024.
Why is Hong Kong considered a favorable location for IPOs at this time?
Hong Kong has emerged as a top global fundraising hub for Chinese companies due to a wave of IPO activity and the increasing uncertainty surrounding U.S. market listings for Chinese firms.
