(Yicai Global) Nov. 23 -- Chinese toy retailer Pop Mart International Group has reached another milestone on its path to raise as much as USD300 million via an initial public offering in Hong Kong next month.

Pop Mart, which sells bind-box toys via vending machines, passed the hearing of Hong Kong Exchanges and Clearing, according to a filing the bourse released yesterday.

The Beijing-based retailer expects to raise from USD200 million to USD300 million via its IPO as early as mid-December, the filing added.

Established in 2010, Pop Mart has built a growing business out of a Japanese phenomenon that allows consumers to collect cute figurines by buying mysterious packages. The Chinese firm's products can be found in 140 locations in over 60 Chinese cities.

The proceeds of the IPO will be used to enhance Pop Mart’s consumer contact channels, digital business, intellectual property, as well as to expand overseas. The firm is also looking into potential acquisitions.

The company has completed eight rounds of financing so far, reaching a valuation of USD2.5 billion, according to business information platform Tianyancha. Its investors include QF Capital, Huaqiang Capital, BA Capital, Jinhuifeng Investment, Loyal Valley Capital, and Huaxing Growth Capital.

Business has been good despite the Covid-19 pandemic. Pop Mart boosted its net profit by 25 percent to CNY141 million (USD21.5 million) in the first half of this year from a year ago. From 2017 to 2019, its net profit surged almost 300 times. The company's revenue was CNY817 million in the first half.

Morgan Stanley and Citic Securities are acting as the joint sponsors of the share issuance.

Editor: Emmi Laine