Chinese lifestyle goods retailer Miniso Group Holding plans to raise US$550 million through a debt instrument to fund its oversea expansion.
The seller of anything from household appliances to electronics and cosmetics will issue equity-linked securities which is set to mature in early 2032, according to a filing to the Hong Kong Stock Exchange.
Securities holders may exchange the shares for cash after a six-year period which is set to begin Jan. 14.
Miniso plans to use 50% of the sale for overseas store network expansion and the remaining half for share buybacks.
The company believes that these initiatives will further enhance its long-term value for shareholders by supporting growth and expansion.
The securities carry an exchange rate of 0.5% per year, payable every six months.
They are offered at $8.28 per share, which is 26% higher than Miniso’ stock closing price on Monday.
This means that investors expect Miniso shares to surpass $8.28 in the next six years.
Miniso expanded its global footprint by adding 773 new stores in the first nine months of last year, bringing its total to 7,186. Around 59% of stores are located in China.
The company’s revenue for the first nine months of 2024 surged by nearly 23% to CNY12.3 billion ($1.75 billion), primarily driven by store expansion and increased consumer spending in overseas markets.
During the same period, gross profit climbed 34% to CNY5.4 billion.
