Miniso raises less money in its Hong Kong IPO after US stocks fall

What’s new: Miniso Group Holding Ltd., a New York-listed discount household and consumer goods retailer, said late Wednesday that it had priced its dual primary listing in Hong Kong at HK$13.80 (1.80 $) per share, a discount of 37.6% from the higher price. in a range announced earlier.

After deducting underwriting fees and other expenses, the final offering price will allow challenger Muji to raise HK$476 million by issuing 41.1 million ordinary shares, 90% of which will be sold to investors outside Hong Kong. Kong.

Proceeds from the IPO will be spent on expanding its store network, improving its supply chain and developing new products, said Miniso, which was first listed in the New York Stock Exchange in October 2020.

The background: U.S.-listed Chinese stocks face delisting due to Beijing’s refusal to let U.S. regulators review their audit working papers. In March, a number of Chinese companies that trade on US exchanges – including Baidu Inc., iQiyi Inc. and Futu Holdings Ltd. – have been added to a list of companies subject to increased surveillance.

Dual listings have therefore become a way for Chinese companies to protect themselves against crowding out of US exchanges. A dual primary listing costs more and comes with stricter reporting rules than a secondary listing, but it offers investors a safe alternative if the stock is delisted in the United States.

Contact reporter Ding Yi ([email protected]) and editor Bertrand Teo ([email protected])

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