Caixin
May 29, 2020 03:09 AM
FINANCE

Exclusive: Chinese Blind Box Toy Marketer Pop Mart to File for HK IPO

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What’s new: Chinese blind box toy brand Pop Mart plans to submit an initial public offering (IPO) application to the Hong Kong Stock Exchange Friday or no later than next week, according to people familiar with the matter.

The Beijing-based toy marketer raised more than $100 million in a pre-IPO round of funding in April, valuing the company at $2.5 billion. The funding was led by Chinese private equity firm Loyal Valley Capital, U.S. venture capital firm Sequoia Capital and China Renaissance’s New Economy Fund, Caixin learned.

The shares to be offered in the IPO won’t exceed 20% of the company’s total equity, according to people familiar with the matter. Pop Mart declined to comment on its IPO plan.

The background: Founded in 2010, Pop Mart started as a retailer of lifestyle commodities, including toy, home, digital and beauty products. In recent years, the company shifted its focus to blind box toys, which are collectible figures in mystery packaging. Buyers don’t know what they get until they open the package.

Pop Mart operates about 150 retail stores and about 900 automated vending machines across the country. It also sells through online platforms. The company posted a net profit of 21 million yuan ($2.94 million) on revenue of 161 million yuan for the first six months of 2018, according to the company’s most recent available financial records.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

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