MINISO Group Announces Offering of US$550 Million Equity Linked Securities
MINISO Group (NYSE: MNSO) has announced a US$550 million offering of equity linked securities due 2032. The Securities will bear a 0.5% annual interest rate, payable semiannually, with an initial exercise price of HK$64.395 per Share, representing a 32.5% premium over the expected offer price.
The company plans to use 50% of the net proceeds for overseas expansion, supply chain optimization, brand building, and working capital, while the other 50% will be used for share repurchases. The Securities will be exchangeable for cash from January 14, 2031, and include Call Spread Transactions to reduce potential dilution and offset cash payments.
Security holders can require MINISO to redeem their Securities on January 14, 2028, and January 14, 2030, at 100% of the principal amount plus accrued interest. The offering is expected to close around January 14, 2025.
MINISO Group (NYSE: MNSO) ha annunciato un'offerta di titoli collegati all'equity per un valore di 550 milioni di dollari, con scadenza nel 2032. I titoli avranno un tasso d'interesse annuale dello 0,5%, pagabile semestralmente, con un prezzo di esercizio iniziale di HK$64,395 per azione, che rappresenta un premio del 32,5% rispetto al prezzo di offerta previsto.
L'azienda prevede di utilizzare il 50% dei proventi netti per l'espansione all'estero, l'ottimizzazione della catena di approvvigionamento, la costruzione del marchio e il capitale circolante, mentre l'altro 50% sarà destinato al riacquisto di azioni. I titoli saranno convertibili in contante a partire dal 14 gennaio 2031 e includeranno operazioni di Call Spread per ridurre la potenziale diluizione e compensare i pagamenti in contante.
I possessori di titoli possono richiedere a MINISO di riscattare i loro titoli il 14 gennaio 2028 e il 14 gennaio 2030, al 100% dell'importo principale più gli interessi maturati. Si prevede che l'offerta si chiuderà intorno al 14 gennaio 2025.
MINISO Group (NYSE: MNSO) ha anunciado una oferta de títulos vinculados a la equidad por un valor de 550 millones de dólares, con vencimiento en 2032. Los títulos tendrán una tasa de interés anual del 0,5%, pagadera semestralmente, con un precio de ejercicio inicial de HK$64,395 por acción, lo que representa una prima del 32,5% sobre el precio de oferta esperado.
La empresa planea utilizar el 50% de los ingresos netos para la expansión internacional, la optimización de la cadena de suministro, la construcción de la marca y el capital de trabajo, mientras que el otro 50% se destinará a la recompra de acciones. Los títulos serán canjeables por efectivo a partir del 14 de enero de 2031 e incluirán Transacciones de Call Spread para reducir la dilución potencial y compensar los pagos en efectivo.
Los tenedores de títulos pueden exigir a MINISO que canjee sus títulos el 14 de enero de 2028 y el 14 de enero de 2030, al 100% del monto principal más los intereses acumulados. Se espera que la oferta cierre alrededor del 14 de enero de 2025.
MINISO Group (NYSE: MNSO)는 2032년 만기인 5억 5천만 달러 규모의 주식 연결 증권 공모를 발표했습니다. 이 증권은 연 0.5%의 이자율이 적용되며, 반기마다 지급되며, 초기 행사가격은 주당 HK$64.395로, 예상 오퍼 가격 대비 32.5%의 프리미엄을 나타냅니다.
회사는 순수익의 50%를 해외 진출, 공급망 최적화, 브랜드 구축 및 운전자본에 사용할 계획이며, 나머지 50%는 자사주 매입에 사용될 것입니다. 이 증권은 2031년 1월 14일부터 현금으로 전환 가능하며, 잠재적 희석을 줄이고 현금 지급을 상쇄하기 위한 콜 스프레드 거래를 포함합니다.
증권 보유자는 2028년 1월 14일과 2030년 1월 14일에 MINISO에게 증권을 100% 원금과 발생한 이자와 함께 상환해 줄 것을 요구할 수 있습니다. 제안은 2025년 1월 14일 경에 마감될 것으로 예상됩니다.
MINISO Group (NYSE: MNSO) a annoncé une offre de titres liés aux capitaux propres d'un montant de 550 millions de dollars, avec échéance en 2032. Les titres porteront un taux d'intérêt annuel de 0,5 %, payable semestriellement, avec un prix d'exercice initial de HK$64,395 par action, représentant une prime de 32,5 % par rapport au prix d'offre prévu.
L'entreprise prévoit d'utiliser 50 % des produits nets pour l'expansion à l'étranger, l'optimisation de la chaîne d'approvisionnement, la construction de la marque et le fonds de roulement, tandis que l'autre 50 % sera utilisé pour les rachats d'actions. Les titres seront échangeables contre des espèces à partir du 14 janvier 2031 et incluront des transactions de Call Spread pour réduire la dilution potentielle et compenser les paiements en espèces.
Les titulaires de titres peuvent exiger que MINISO rachète leurs titres le 14 janvier 2028 et le 14 janvier 2030, à 100 % du montant principal plus les intérêts courus. La clôture de l'offre est prévue autour du 14 janvier 2025.
MINISO Group (NYSE: MNSO) hat ein Angebot von eigenkapitalbezogenen Wertpapieren über 550 Millionen US-Dollar mit Fälligkeit im Jahr 2032 angekündigt. Die Wertpapiere werden einen jährlichen Zinssatz von 0,5% haben, der halbjährlich zahlbar ist, mit einem ursprünglichen Ausübungspreis von HK$64,395 pro Aktie, was eine Prämie von 32,5% gegenüber dem erwarteten Angebotspreis darstellt.
Das Unternehmen plant, 50% der Nettoerlöse für internationale Expansion, Optimierung der Lieferkette, Markenbildung und Betriebskapital zu verwenden, während die anderen 50% für Aktienrückkäufe verwendet werden. Die Wertpapiere werden ab dem 14. Januar 2031 in Bargeld umtauschbar sein und beinhalten Call-Spread-Transaktionen, um eine mögliche Verwässerung zu verringern und Barzahlungen auszugleichen.
Die Inhaber von Wertpapieren können von MINISO verlangen, dass ihre Wertpapiere am 14. Januar 2028 und am 14. Januar 2030 zum 100% des Nennbetrags zuzüglich aufgelaufener Zinsen zurückgezahlt werden. Der Abschluss des Angebots wird um den 14. Januar 2025 erwartet.
- Raising substantial capital of US$550 million through equity linked securities
- 50% of proceeds allocated to business expansion and operations
- 50% of proceeds dedicated to share repurchases
- Low interest rate of 0.5% per annum on the securities
- Structure designed to minimize immediate shareholder dilution
- Potential future dilution if upper strike warrant is exercised
- Additional debt obligation with interest payments
- Market price of shares may be affected by hedging activities
Insights
The
The 50-50 split of proceeds between international expansion and share buybacks demonstrates a balanced approach to capital allocation. The overseas expansion focus aligns with MINISO's global growth strategy, while the buyback component provides downside support for the stock. The cash-settlement feature of the securities provides flexibility in managing future dilution, though it may impact cash flow management.
The timing and structure of this offering suggest strong institutional demand for MINISO's equity-linked instruments. The
The company's focus on overseas expansion indicates a strategic pivot toward accelerating international growth, which could help diversify revenue streams and reduce dependency on any single market. The share buyback component sends a strong signal about management's confidence in the business fundamentals and current valuation levels.
The offering's structure incorporates sophisticated hedging mechanisms and regulatory compliance measures. The Regulation S offering format restricts sales to non-U.S. persons, simplifying regulatory requirements while still accessing global capital markets. The securities lending arrangement with the CEO's controlled entity demonstrates insider confidence while facilitating efficient market making.
The detailed disclosure of potential market impact from hedging activities reflects strong regulatory compliance and transparency. The redemption provisions at years 3 and 5 provide investors with important liquidity options while giving MINISO flexibility in managing its capital structure.
In connection with the Securities Offering, the Company expects to enter into lower strike call and upper strike warrant (collectively, the "Call Spread Transactions") with the managers of the Securities Offering and/or their affiliates and/or other financial institutions (each, a "Call Spread Counterparty") shortly after the pricing of the Securities Offering. The Securities and the lower strike call will be settled wholly in cash and the Company may issue ordinary shares (the "Shares") only under the upper strike warrant. This overall structure will enable the Company to raise funds in a form similar to convertible debt securities, whilst deferring potential dilution to a higher effective exercise price.
The Company plans to use
Terms of the Securities
When issued, the Securities will constitute direct, unconditional, unsubordinated and (subject to the terms and conditions of the Securities (the "Conditions")) unsecured obligations of the Company and bear interest at a rate of
The initial exercise price at which the Securities will be exchanged will initially be
Security holders may exchange their Securities for cash: (i) at any time on or after January 14, 2031 to the date falling 70 scheduled trading days prior to the maturity date ("Initial Exercise Period"); and (ii) at any time from the date falling 69 scheduled trading days preceding the maturity date to the date falling 10 scheduled trading days preceding the maturity date ("Final Exercise Period"), in accordance with the terms of the Securities. Upon exercise by a Security holder of their Securities, the Security holder will receive a cash settlement amount in
Holders of the Securities may require the Company to redeem all or some of such holder's Securities on January 14, 2028 and January 14, 2030 or in the event of certain fundamental changes, in each case, at a redemption price equal to
In addition, the Company may redeem all but not part of the Securities in the event of certain changes to tax laws or if less than
The Securities have been offered to non-
Call Spread Transactions
The Call Spread Transactions are generally expected to reduce potential dilution to the Shares of the Company and offset cash payments that the Company will be required to make in excess of the principal amount of the Securities upon exchange of Securities by the Security holders. This will give the Company greater financial flexibility and reduce the risk exposure of the Company to market fluctuations during the tenor of the Securities to a pre-determined range.
The Call Spread Transactions are expected to include: (i) Lower Strike Call: a call option transaction, granted by the Call Spread Counterparties to the Company, exercisable at the discretion of the Company, entitling the Company to (a) the difference, settled in cash, between the exercise price of the lower strike call, which is equivalent to the exercise price of the Securities, and the volume weighted average price per Share over a specified period of trading days, converted to
In connection with establishing their initial hedges of the Call Spread Transactions, the Call Spread Counterparties or their respective affiliates expect to purchase the Shares and/or enter into various derivative transactions with respect to the Shares shortly after the pricing of the Securities. This activity could increase (or reduce the size of any decrease in) the market price of the Shares, the ADSs, other securities of the Company or the price of the Securities at that time. The effect, if any, of this activity, including the direction or magnitude, on the market price of the Shares, the ADSs, other securities of the Company or the price of the Securities will depend on a variety of factors, including market conditions, and cannot be ascertained at this time.
In addition, the Call Spread Counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivative transactions with respect to the Shares, the ADSs, the Securities or other securities of the Company and/or purchasing or selling the Shares, the ADSs, the Securities or other securities of the Company in secondary market transactions following the pricing of the Securities and prior to the maturity of the Securities (and are likely to do so following any exchange of the Securities, repurchase of the Securities by the Company upon occurrence of certain fundamental changes or otherwise, in each case, if the Company opts to unwind the relevant portion of the Call Spread Transactions early). The effect, if any, of this activity on the market price of the Shares and/or the ADSs, or the price of the Securities will depend on a variety of factors, including market conditions, and cannot be ascertained at this time. Any of this activity could, however, also cause or avoid an increase or a decrease in the market price of the Shares and/or the ADSs, other securities of the Company or the price of the Securities. In addition, if the upper strike warrant is exercised, to settle their obligations under the Call Spread Transactions, the Call Spread Counterparties or their respective affiliates expect to sell up to the number of Shares underlying the Call Spread Transactions at the time, which could cause a decrease in the market price of the Shares and/or the ADSs, other securities of the Company or the price of the Securities. Any of the above changes in the market price of the Shares could affect whether the holders exchange their Securities and value of the consideration that the holders will receive upon exchange of the Securities. In addition, any of the Call Spread Counterparties may choose to engage in, or to discontinue engaging in, any of these transactions and activities with or without notice at any time, and their decisions will be in their sole discretion and not within the Company's control.
Investor Hedging Transactions
The Company expects that certain purchasers of the Securities may establish a short position with respect to the Securities by entering into short derivative positions with respect to the Shares (by entering into derivatives with an affiliate of one or more managers of the Securities Offering), in each case, in connection with the Securities Offering, and are expected to dynamically adjust their short positions in respect of the Securities they hold, in the market and/or through derivatives. Other investors in the Securities may engage in similar arbitrage activities during the tenor of the Securities. Any of the above market activities by purchasers of the Securities could increase (or reduce any decrease in) or decrease (or reduce any increase in) the market price of the Shares, ADSs or the Securities at that time, and the Company cannot predict the magnitude of such market activity or the overall effect it will have on the price of the Shares, ADSs or the Securities.
In order to facilitate hedging activities of the purchasers of the Securities, a shareholder of the Company (the "Lender") controlled by Mr. Guofu Ye, Founder, Chairman and CEO of the Company, is expected to enter into a securities lending deed with an affiliate of one of the managers of the Securities Offering (the "Borrower"), pursuant to which the Lender will lend a certain number of the Shares (the "Borrowed Shares") to the Borrower. The managers of the Securities Offering are expected to facilitate sales of the Borrowed Shares in order to facilitate initial hedging by certain purchasers of the Securities of the market risk they are exposed with respect to the Securities (the "Delta Placement").
The Borrower or its affiliate will receive all of the proceeds from the sale of the Borrowed Shares. Neither the Company nor the Lender will receive any proceeds from the sale of the Borrowed Shares.
Other Matters
The Securities and the Borrowed Shares have not been and will not be registered under the Securities Act or securities laws of any other places. They may not be offered or sold within
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
This press release contains information about the pending Securities Offering, and there can be no assurance that the Securities Offering will be completed.
About MINISO Group
MINISO Group is a global value retailer offering a variety of trendy lifestyle products featuring IP design. The Company serves consumers primarily through its large network of MINISO stores, and promotes a relaxing, treasure-hunting and engaging shopping experience full of delightful surprises that appeals to all demographics. Aesthetically pleasing design, quality and affordability are at the core of every product in MINISO's wide product portfolio, and the Company continually and frequently rolls out products with these qualities. Since the opening of its first store in
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Investor Relations Contact:
Email: ir@miniso.com
Phone: +86 (20) 36228788 Ext.8039
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SOURCE MINISO Group Holding Limited
FAQ
What is the size and purpose of MINISO's (MNSO) new securities offering?
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What is the initial exercise price for MNSO's equity linked securities?
When can holders exchange MNSO's securities for cash?
What redemption options are available for MNSO security holders?
