Miniso, a Chinese budget household and consumer goods retailer, is planning to raise up to $562.4 million in its initial public offering (IPO) on the New York Stock Exchange (NYSE), becoming the latest Chinese company to enter the U.S. capital market despite mounting geopolitical tensions between the world’s two largest economies.

The Tencent-backed company, which is China’s cheaper alternative to Japanese retail brand Muji, said that it will sell 30.4 million American depositary shares (ADSs) priced between $16.50 and $18.50 apiece, with each ADS representing four Class A ordinary shares, according to an amended IPO prospectus it submitted to the U.S. Securities and Exchange Commission (SEC) on Wednesday.

Miniso said that it plans to use the net proceeds of the planned offering to open new stores, expand its warehouse and logistics networks and develop new technologies and information systems, the prospectus showed.

Founded in 2013, Guangzhou-based Miniso sells products ranging from cosmetics and textiles to toys and snacks, and had over 4,200 stores in more than 80 countries and regions as of June 30 this year, over 2,500 stores of which were in China, according to the prospectus.

The coronavirus-linked store shutdowns largely resulted in a year-on-year decline of 4.4% in Miniso’s revenue to 9 billion yuan ($1.3 billion) for the fiscal year ending June 30, although it was able to cut its loss from 294 million yuan to 260 million yuan, according to the company.

Miniso’s IPO plan comes as some Chinese startups, especially those in the auto industry, are racing to go public in the U.S. this year regardless of the stricter local auditing requirements facing them in the wake of Chinese coffee chain Luckin’s financial fraud.

Contact reporter Ding Yi (yiding@caixin.com)

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