Chinese toy maker Pop Mart International Group is aiming to raise up to $590 million through a stock market listing in Hong Kong.
The company, China's largest trendy toy manufacturer, is planning to use the proceeds of the share sale to expand its business domestically and internationally.
Pop Mart said Monday that it plans to sell up to 135.7 million new shares to global investors. Approximately 16.3 million of those shares will be made available to the public.
The company said in an exchange filing that the indicative price range for its shares would be between HK$31.5 and HK$38.5 per share.
In its preliminary listing prospectus, Pop Mart claimed that it holds an 8.5% market share in China's toy market. The company said that it was the country's largest and fastest-growing seller of "pop toys," a type of toy that is infused with pop culture and trendy themes.
Data prepared by Frost & Sullivan - hired by the company to prepare its listing prospectus - showed that Pop Mart was able to sell pop toys worth more than 20.7 billion yuan in China last year.
Pop Mart currently holds 93 intellectual properties, comprising 25 exclusively licensed intellectual properties, 12 proprietary and 56 nonexclusively licensed intellectual properties. The company's nonexclusively licensed intellectual properties include those owned by Universal Studios and Walt Disney.
"We have attracted and maintained a pool of high-quality intellectual property resources in the pop toy industry by working with our artists, established IP providers and our in-house design team," Pop Mart said in its preliminary prospectus.
Pop Mart mostly sells products manufactured by third-party supplies. This includes action figures, plush toys and electronics. Most of its products are being sold through its online flagship store and its partner e-commerce platforms. The company also operates several brick-and-mortar retail stores and hundreds of vending machines selling its products.
For the first half of the year, Pop Mart reported profits of more than 141.3 million yuan - a 24% year-on-year increase. Revenues for the period also grew by 50% to 817.8 million yuan.
