- Green Growth
- Your Consultant
|China-based Miniso opened thousands of stores across the globe|
The US securities circle most recently saw a new member from China in Miniso, which is famous for selling Japanese-looking products with reasonable prices. Accordingly, after three days on the NYSE, the company gained about $608 million that has made its boss Ye Guofu the newest billionaire with a total asset value of $4 billion, following statistics published by Bloomberg.
MNSO has been traded on NYSE at around $23, slightly down 0.78 per cent against the previous day (October 18). Nevertheless, it was still above the initial price on October 15, reflecting the confidence of investors.
The great support of China-based Tencent may be one of the reasons behind its optimistic prospects. Pointedly, since 2018, the technology conglomerate invested about ¥1 billion ($149.2 million) in Miniso to own 4.8 per cent of the shares. To date, the value of the investment has quadrupled to reach about $614 million.
Moreover, Bloomberg was of the opinion that the impacts of COVID-19 also contributed to the successful IPO as it has increased difficulties for many, pressing them to save more, making Miniso's cheap items a more ideal option. Meanwhile, a handful of middle-end retailers such as Brook Brothers, J.Crew, and Muji in the US all filed for bankruptcy.
The Chinese retailer has been accused of copying the minimalist-style of Japan-based retailer Muji that is owned by Ryohin Keikaku Co., Ltd. which specialises in providing unbranded household goods.
In 2016, Miniso and a partner were required to compensate Moët Hennessy Louis Vuitton (LVMH)in a lawsuit about violations in design in Shenzhen city, China.
Ye has completely refused the accusations. He said that all Miniso’s items are designed professionally and the core value of each product is the eye-catching design.