MINISO Group Holding Limited (MNSO) saw its stock soar 5.18% in pre-market trading on Wednesday, following news of its plans for a Hong Kong initial public offering (IPO) of its toy unit, Top Toy. The company has reportedly selected JPMorgan Chase and UBS to lead the planned IPO, signaling a significant move in its business strategy.

According to sources familiar with the matter, MINISO is also seeking new investors for Top Toy, including potential backing from sovereign wealth funds, ahead of the offering. This move comes as the company looks to capitalize on the growing toy market and follows the success of Chinese toymaker Pop Mart International Group Ltd, which has seen its market value soar to $42 billion.

The IPO plans reflect Top Toy's rapid growth since its launch in late 2020. Starting with just nine stores in five Chinese cities, the brand has expanded to 280 stores as of March 2025 and has begun to expand overseas. This growth trajectory, combined with the potential IPO, has sparked investor interest in MINISO. The company's Hong Kong-listed shares jumped 5.4% in afternoon trading, while its US-listed shares gained 4.8% in overnight trading, highlighting the positive market sentiment surrounding this development.