Key Takeaways
- MINISO's art toy unit TOP TOY re-filed for a Hong Kong IPO on March 31.
- The filing comes as rival Pop Mart sees its overseas growth slow significantly.
- J.P. Morgan and UBS are joint sponsors for the proposed listing.
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MINISO's TOP TOY files for Hong Kong IPO amid market questions
MINISO Group Holding's art toy subsidiary, TOP TOY, re-submitted its application for a Hong Kong initial public offering on March 31, aiming to list on the Main Board as the broader market for collectible toys shows signs of cooling.
The filing, sponsored by J.P. Morgan and UBS Group, did not disclose the offering's size or price range. A successful listing would spin off the fast-growing unit from its parent MINISO, a lifestyle product retailer listed in New York and Hong Kong.
TOP TOY's move contrasts with the recent performance of its primary competitor, Pop Mart International Group. Pop Mart's shares fell over 22% after its 2025 results implied a "significant deceleration" in overseas growth during the fourth quarter, according to Ke Yan, head of research at DZT Research. While Pop Mart's full-year sales grew 184.7% to 37.1 billion yuan ($5.4 billion), its 2026 forecast of 20% growth is below the market consensus of 33%.
The IPO filing signals MINISO's confidence in TOP TOY's distinct brand, but the listing will test investor appetite for a market that may be past its peak hype. Analysts have noted that even Pop Mart's popular Labubu and Molly series have seen sales growth slow as the initial frenzy cools and collectors become more selective.
Competitive Landscape
The backdrop for TOP TOY's listing is a market questioning the longevity of the art toy boom. Pop Mart, the industry leader, is now shifting strategy to focus on the longevity of its intellectual property, including investments in theme parks and a live-action movie for its Labubu character. "We think the hype has cooled in major overseas markets due to a lack of new product launches," Jeff Zhang, an equity analyst at Morningstar, said in a recent note on Pop Mart.
For TOP TOY, the challenge will be to convince investors its growth trajectory can outpace a slowing market. The capital raised from the IPO is expected to fund store expansion, IP development, and supply chain improvements, according to the filing's preliminary use of proceeds. The company has not yet disclosed cornerstone investors or a detailed timeline for the listing.
The TOP TOY IPO will serve as a key barometer for the art toy sector's health, valued separately from its parent MINISO. A successful debut could unlock significant value for MINISO shareholders, while a weak reception would validate concerns that the explosive growth phase for collectible toys is over. First-day trading will be the ultimate test of institutional demand for the asset class.
This article is for informational purposes only and does not constitute investment advice.
