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Muji Competitor MINISO to Plan $1 Billion IPO

Crystal Tse and Vinicy Chan
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Muji Competitor MINISO to Plan $1 Billion IPO

(Bloomberg) -- MINISO Co., a Chinese budget household and consumer good retailer, is planning an initial public offering that could raise about $1 billion, according to people with knowledge of the matter.The company is inviting banks to pitch for roles on the proposed offering, the people said, asking not to be identified because the information is private. The share sale could take place in Hong Kong or the U.S., while the timeline is yet to be decided, the people said.MINISO, founded by Japanese designer Miyake Junya and Chinese entrepreneur Ye Guofu in 2013, designs its products in Japan and has more than 3,500 stores across 80 countries including China, the U.S., Brazil, the United Arab Emirates and Russia, according to its website. The firm posted a revenue of 17 billion yuan ($2.5 billion) in 2018.Tencent Holdings Ltd. and Hillhouse Capital invested 1 billion yuan in the retailer last year in its first external financing round, according to a statement at the time.Deliberations are at an early stage, and details of the offering including the fundraising size could change, the people said. The company doesn’t have any additional information to disclose after announcing in January last year that it plans an IPO, a representative said in an emailed response to Bloomberg.MINISO has been compared with Muji, the minimalist retailer owned by Ryohin Keikaku Co. which offers no-brand, no-logo lifestyle and household goods. In 2016, MINISO and a connected firm were ordered to compensate LVMH for its economic losses in a design infringement lawsuit in Shenzhen, according to a court document. On the other hand, the Chinese company is involved in several copyright disputes in which it accused other domestic retailers of copying its brand and fraud during marketing campaigns.(Updates to add an infringement case in last paragraph.)To contact the reporters on this story: Crystal Tse in Hong Kong at ctse44@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.netTo contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Sam NagarajanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

(Bloomberg) -- MINISO Co., a Chinese budget household and consumer good retailer, is planning an initial public offering that could raise about $1 billion, according to people with knowledge of the matter.

The company is inviting banks to pitch for roles on the proposed offering, the people said, asking not to be identified because the information is private. The share sale could take place in Hong Kong or the U.S., while the timeline is yet to be decided, the people said.

MINISO, founded by Japanese designer Miyake Junya and Chinese entrepreneur Ye Guofu in 2013, designs its products in Japan and has more than 3,500 stores across 80 countries including China, the U.S., Brazil, the United Arab Emirates and Russia, according to its website. The firm posted a revenue of 17 billion yuan ($2.5 billion) in 2018.

Tencent Holdings Ltd. and Hillhouse Capital invested 1 billion yuan in the retailer last year in its first external financing round, according to a statement at the time.

Deliberations are at an early stage, and details of the offering including the fundraising size could change, the people said. The company doesn’t have any additional information to disclose after announcing in January last year that it plans an IPO, a representative said in an emailed response to Bloomberg.

MINISO has been compared with Muji, the minimalist retailer owned by Ryohin Keikaku Co. which offers no-brand, no-logo lifestyle and household goods.

In 2016, MINISO and a connected firm were ordered to compensate LVMH for its economic losses in a design infringement lawsuit in Shenzhen, according to a court document. On the other hand, the Chinese company is involved in several copyright disputes in which it accused other domestic retailers of copying its brand and fraud during marketing campaigns.

(Updates to add an infringement case in last paragraph.)

To contact the reporters on this story: Crystal Tse in Hong Kong at ctse44@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Sam Nagarajan

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.