Pop Mart, Radiance target Hong Kong IPOs in busy October
- Intellectual property manager Pop Mart, and property developer Radiance, are seeking to raise up to US$1 billion combined, sources say
- The two Beijing-based firms’ IPOs could join fintech firm Ant Group’s jumbo IPO in October
Two Chinese companies, Pop Mart International and Radiance Holdings, are hoping to list in Hong Kong as early as October, a month that could potentially see a record amount of fundraising on the city’s bourse.
Year-to-date the Hong Kong stock exchange has helped new issuers raise US$10.78 billion, up 7 per cent from US$10.08 billion in the same period a year ago, data from Refinitiv shows. Alibaba, the South China Morning Post’s parent, owns a third of Ant’s stock.
Pop Mart has 85 intellectual property rights, based on which it makes pop toys. Pop toys, such as action figures, are created from licensed pop content such as cartoon or movies; and buyers, including children and adults, often collect them.
Its exclusively licensed IP includes characters Satyr Rory, Pucky and others. It also makes toys based on non-exclusive licences, which include characters such as Mickey Mouse, Hello Kitty and Despicable Me.
Morgan Stanley and Citic Securities are joint sponsors of the deal; China Renaissance is the joint global coordinator. The banks were either not immediately available for comment or refused to comment.
Pop Mart plans to spend the net proceeds from the IPO on expanding its distribution channels and intellectual property rights pool and on funding potential acquisitions.
Last year its net profit more than quadrupled to 451.12 million yuan (US$66.47 million/ ), from 99.52 million yuan a year ago.
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Radiance Holdings plans to use the net proceeds raised from its IPO on financing ongoing projects and to repay existing trust loans, according to preliminary listing papers it filed with the stock exchange.
Joint sponsors for the deal include ABC International, CLSA, and Haitong International, according to the preliminary filing. They banks were either not immediately available for comment, or refused to comment.
As at end of December, the company had 144 residential property projects under development. These projects had a total of 26.67 million square metres of gross floor area attributable to the company, of which about 90 per cent are located in second- and third tier cities across China.
Last year its net profit totalled 2.69 billion yuan, up 17 per cent from 2.3 billion yuan a year ago.
The cloud storage subsidiary of Kingsoft Corp, one of China’s biggest computer software developers, is selling 17.68 million American depositary shares. The deal amount is based on its Monday’s closing price at US$36.9.
About half of the shares being sold are from existing shareholders, which include Shunwei Capital, the venture capital firm co-founded by Xiaomi founder Lei Jun.
Kingsoft Cloud plans to use the proceeds raised to invest in technology, particularly cloud technologies, artificial intelligence, big data and the internet-of-things.
Underwriters for the deal include JPMorgan, UBS, Credit Suisse, CICC and Goldman Sachs. The deal is expected to price Wednesday. Kingsoft Cloud raised US$510 million in its IPO in May.
