Miniso (HKG:9896) will issue $550 million in equity-linked securities due 2032, according to a Tuesday filing with the Hong Kong Exchange.
The lifestyle retailer plans to enter into lower strike call, which will be settled wholly in cash, and upper strike warrant call spread transactions through the issuance of shares, which will allow Miniso to raise funds similar to convertible debt securities,
The lower strike exercise price is at $8.2822 per share while the upper strike exercise price is $13.1317 per share, the filing said.
Net proceeds are set at about $457.1 million. Half of the net proceeds from the securities offering and the call spread transactions will be used to expand its global store network, boost its supply chain, improve marketing, and add to working capital.
The other half will be used for buying shares or American depositary shares under share buyback programs, the filing said.
UBS AG Hong Kong Branch and Hongkong and Shanghai Banking Corp. of HSBC (HKG:0005) are the placing banks.
Shares fell 7% during Tuesday's late morning trading.
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