Miniso to Spin Off Top Toy Unit in Hong Kong IPO
The move aims to unlock value by tapping into the booming toy market and enhancing the brand's appeal to investors as a standalone entity.
Chinese budget retailer Miniso is set to spin off its fast-growing subsidiary, Top Toy, for a separate listing on the Hong Kong Stock Exchange. The strategic move is designed to unlock greater value from the popular toy brand and capitalize on strong investor appetite for the sector.
Top Toy, launched by Miniso in December 2020, has quickly become a significant growth driver for the company, expanding to nearly 300 stores. The brand has resonated with consumers by focusing on trendy, collectible toys, a segment experiencing rapid growth in China and beyond. By separating Top Toy, Miniso aims to provide the business with greater operational and financial transparency, making it a more attractive, focused investment for those looking to directly tap into the toy industry.
The proposed listing comes as China's toy market is projected to see substantial growth, fueled by rising disposable incomes and a strong consumer focus on educational and collectible items. , a strategy that follows the successful IPO of other Chinese toymakers like Pop Mart International.
While the exact timing and valuation are yet to be finalized, to the Hong Kong exchange. JP Morgan, UBS, and CLSA have been appointed as coordinators for the initial public offering. Earlier reports suggested a potential fundraising target of around $300 million. The move is also seen as a vote of confidence in the Hong Kong IPO market, which has seen a slowdown in activity.
For Miniso, the separation allows its core budget retail business to be valued independently, while retaining a significant stake in Top Toy's future growth. Investors will be closely watching the IPO for signs of sustained momentum in the collectible toy space and for its potential to invigorate Hong Kong's listing market.