Chinese trading card firm Kayou plans $500 million Hong Kong IPO, sources say

Bloks

21/02/2025 06:02

By Kane Wu and Scott Murdoch
       HONG KONG/SYDNEY, Feb 21 (Reuters) - Chinese trading
card and collectible toy company Kayou has restarted plans for a
Hong Kong initial public offering (IPO) to raise about $500
million, according to two sources with direct knowledge of the
matter.
    The company is planning to lodge its filings with the Hong
Kong Stock Exchange (HKEX) as soon as this month, the sources
added.
    The sources could not be named discussing confidential
information. Kayou did not immediately respond to a request for
comment.
    Kayou had initially planned to list in Hong Kong in 2024 but
could not get regulatory approval for the deal to go ahead,
Bloomberg News reported last year. Chinese regulators slowed the
IPO approval process last year as global financial markets were
volatile amid high interest rates and major geopolitical events.
    Approvals for Hong Kong IPOs are now happening at a faster
rate, bankers say.
    The Shanghai-based Kayou produces trading cards, toys and
merchandise for brands that include Ultraman and My Little Pony,
according to its website.
    The deal comes after toymaker Bloks Group  0325.HK  raised
$215 million in a Hong Kong IPO that was very popular among the
city's army of retail investors. The retail portion of that deal
was 6,000 times oversubscribed, according to the company's
regulatory filings.
    Bloks Group stock rose more than 80% when it began trading
in January and its shares remain nearly 34% above the issue
price.
    Chinese consumer companies are expected to be popular Hong
Kong IPO candidates this year as global investors return
attention to China and its economy recovers from the pandemic
lockdowns, according to bankers and advisors.
    Mainland firms, especially in the tech sector, are
accelerating plans to raise funds offshore, tapping into a
rebound in investor sentiment fueled by hopes of Beijing's
support for private firms and the popularity of DeepSeek,
bankers said.
    

 (Reporting by Kane Wu in Hong Kong and Scott Murdoch in Sydney;
Editing by Stephen Coates)
 ((Scott.Murdoch@thomsonreuters.com;))