Hong Kong IPO Makes This 33-Year-Old Chinese Toy Tycoon A Billionaire Several Times Over

Chinese toy billionaire Wang Ning saw his wealth surge almost three fold this year, thanks to strong investor demand for the initial public offering of his Pop Mart International Group.

The Beijing-based company raised $674 million by pricing its IPO at the top of its previously indicated range of HK$31.5 to HK$38.5 a share. Pop Mart’s stock begins trading in Hong Kong on December 11, and the company said it plans to use the proceeds of the IPO to open more stores and expand overseas.

Wang, who owns just under 50% of the company following the sale, now has a net worth of $3.2 billion—up from $1.2 billion when a private funding round in April placed a $2.5 billion valuation on the firm, according to Forbes estimates. Pop Mart’s valuation currently sits at $6.9 billion.

The entrepreneur, who at the age of 33 has already amassed a considerable fortune, was a pioneer in China’s booming market for so-called “blind box” toys. Pop Mart sells collectible figurines for about $8 each in packaging that doesn’t allow buyers to see what’s inside.

Pop Mart’s rapid growth is attributed to its appeal among young Chinese consumers seeking to build out their collections. Despite temporary store closures earlier this year to comply with quarantine measures, the company’s prospectus says revenue in the first half grew 51% to 817.8 million yuan ($125 million), and net profit reached 141.3 million yuan, a 24% increase from the same period a year earlier.

The company’s best-selling dolls this year has been its Dimoo series (aliens with puffs of cotton candy-shaped hair),featuring designs that were acquired from mainland China-based artist Ayan Tang. Dimoo accounted for 14.4% of the company’s sales in the first half, surpassing it previous best-selling series, Molly dolls, which are a collaboration with Hong Kong-based artist Kenny Wong that now make up 13.7% of sales.

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Pop Mart sells both online and offline. It plans to open 183 new stores in China by the end of 2022, on top of the 136 stores it currently has in 33 cities. Within the next two years, the company will also add 1,800 robo-shops that have vending machine-like dispensers of the blind boxes.

Wang, meanwhile, is looking at countries including Korea, Japan and Singapore for expansion abroad. Pop Mart plans to open 100 retail stores and 1,000 robo-shops overseas by 2022, the prospectus shows.

Wang said he came up with the idea of selling blind box toys through a process of trial and error. Drawing inspiration from Hong Kong-based retail chain LOG-ON, he launched Pop Mart in 2010 after graduating in 2009 from Zhengzhou University, where he studied advertising.

The company initially sold too many different types of products that included toys, cosmetics and stationery. Wang gradually cut off other categories to focus on toys as he struggled to manage inventory, staff and supply, he told Forbes Asia in a July interview. “At that time, toys were our best selling category,” he said. “We gradually discontinued other products, and in 2014, we focused exclusively on toys.”