Kayou, a Chinese maker of gaming cards and stationery with animation themes, is considering an initial public offering in Hong Kong as soon as next year, according to people familiar with the matter.
(Bloomberg) — Kayou, a Chinese maker of gaming cards and stationery with animation themes, is considering an initial public offering in Hong Kong as soon as next year, according to people familiar with the matter.
The company is working with China International Capital Corp. and Morgan Stanley on the preparations of the share sale, the people said, asking not to be identified as the information is private. The company could raise as much as a few hundred million dollars in its first-time share sale, said one of the people, depending on the market condition.
Deliberations are preliminary and details of the IPO such as bank lineup and timing could change, the people said. Representatives for CICC and Morgan Stanley declined to comment, while a representative for Kayou didn’t respond to requests for comment.
Kayou, based in both Shanghai and Zhejiang, makes collectible cards that features popular characters from animation such as Ultraman and My Little Pony as well as from Chinese literature classic Three Kingdoms. Its offerings range from a $3 portable Pokemon mirror to an Ultraman gaming card set that costs 1,360 yuan ($186), according to its official online store on Alibaba Group Holding Ltd.’s Taobao.
The company has more than 50 intellectual property partnerships with domestic and foreign brands, according to its official website. Olympic gold medalist Tian Liang and his son are the firm’s brand ambassadors.
Animation themed collectibles have grown popular in China as a rising middle class is more willing to spend on entertainment. Ultraman is one of those that has gained traction and an amusement park last year unveiled an Ultraman-themed venue with a 12-meter-tall model of the fictional superhero.
Pop Mart, a so-called “mystery box” toy maker in China, raised around HK$6 billion ($767 million) in its Hong Kong initial public offering in 2020. The stock has risen about 21% this year, giving the company a valuation of about $4.2 billion.
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