Chinese toymaker Pop Mart, a Disney, Universal Studios partner, launches US$590 million IPO to fund expansion

The Beijing-based company plans to sell 135.7 million new shares to global investors, of which 16.3 million shares will be offered to the general public

Pop Mart is China’s largest and fastest-growing ‘pop toy’ company by retail value last year with a market share of 8.5 per cent, according to Frost & Sullivan

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Pop Mart International Group, the largest and fastest-growing pop toy company in China, aims to raise nearly US$590 million from its Hong Kong initial public offering. Photo: EPA-EFE

Published: 8:30am, 1 Dec 2020Updated: 9:28pm, 1 Dec 2020

Pop Mart International Group, one of China’s largest trendy toymakers, aims to raise HK$4.57 billion (US$590 million) via a Hong Kong stock market listing to fund its expansion.

The Beijing-based company plans to sell 135.7 million new shares to global investors, of which 16.3 million shares will be offered to the general public, it said on Monday. The indicative price range is HK$31.5 to HK$38.5.

It plans to use the IPO proceeds to improve its distribution channels, expand overseas, fund potential investments, boost its intellectual property (IP) inventory and digitalise its operations.

Pop Mart is China’s largest and fastest-growing “pop toy” company by retail value last year with a market share of 8.5 per cent, according to Frost & Sullivan, which was hired by the company to prepare data for its listing prospectus.

A booth of Chinese toymaker Pop Mart inside a shopping mall in Beijing. Photo: Reuters

Sales of pop toys – infused with pop culture and trendy content – amounted to 20.7 billion yuan in China last year, with the top five players commanding market shares of 1.6 to 8.5 per cent, according to the research firm.

The company had a total 93 IP at the end of June, comprising 12 proprietary, 25 exclusively licensed and 56 non-exclusively licensed ones.