Miniso to raise $550M through debt instrument

1 min readUpdated Jun 4, 2025Jan 8, 20256:32 AM

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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.

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What this means

Miniso's significant debt raise for international expansion and share buybacks positions them for aggressive global growth, mirroring the ambitious store count increases seen from players like Panpuri in Asia. Funding half a billion dollars through equity-linked securities to expand beyond their 59% China-centric footprint pressures rivals in budget-friendly lifestyle goods, especially given their 23% revenue surge from overseas. While some brands like Louis Vuitton prune less profitable stores in specific regions, Miniso is clearly betting on high-volume expansion. The market's expectation of shares surpassing $8.28 in six years suggests this strategy is well-received. This financial manoeuvre risks over-stretching resources if new markets don't yield expected returns. Closely monitor the rate of new store openings outside China.

Minjun Park · Retail News Asia newsroom

Questions & Answers

What is the purpose of Miniso raising these funds?

Miniso plans to use 50% of the funds to expand its overseas store network. The remaining half is designated for share buybacks to enhance shareholder value and support growth.

How will the investors be compensated for these securities?

The securities carry an exchange rate of 0.5% per year, paid every six months. After a six-year period, investors can exchange the shares for cash.

How many new stores did Miniso open last year and where are most of its stores located?

Miniso added 773 new stores globally in the first nine months of last year, bringing the total to 7,186. Around 59% of these stores are located in China.

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