Ultraman Toymaker Bloks Jumps 82% in HK After Frenzy Over IPO

Bloks Group Ltd., the popular maker of Ultraman and Transformers figurines, saw its stock price surge by 82% in Hong Kong trading on Friday, following a frenzy over its initial public offering (IPO). The company raised $215 million in its Hong Kong IPO, drawing overwhelming demand from individual investors.

The stock, which began trading at HK$60.35 apiece, surged more than 70% late Thursday from its IPO price, according to a KGI Securities gray-market platform. Shanghai-based Bloks surged more than 70% late Thursday from its IPO price of HK$60.35 a share, according to a KGI Securities gray-market platform.

The frenzy over Bloks — demand from mom-and-pop investors was thousands of times higher than the number of shares reserved for them — builds on the popularity of the company's Ultraman and Transformers figurines. Bloks is China's largest maker of Ultraman and Transformers figurines, and its IPO comes as the Hong Kong market is showing signs of recovery after a long downturn.

Bloks reported a first-half loss of 254.9 million yuan ($34.92 million), while posting 1.05 billion yuan in revenue, more than triple from a year ago. The company's revenue growth and high market share in the assembly character toy segment contributed to its appeal to investors.



Bloks' IPO also comes as the Hong Kong market is showing signs of recovery after a long downturn. Local cosmetics firm Mao Geping recently raised $300 million in its oversubscribed Hong Kong IPO, while courier group SF Holding raised $749.3 million.

The company's strong brand recognition and market penetration, as well as its diverse IP portfolio, contribute to its investment appeal. Bloks has successfully developed two in-house IP, Magic Blocks and Hero Infinity, and has obtained non-exclusive licenses for approximately 50 renowned IP from IP proprietors or licensors, including Ultraman, TRANSFORMERS, and others. This diverse IP portfolio allows Bloks to offer a wide range of products that cater to different age groups and interests, increasing its appeal to investors.



Bloks' IPO also comes as the Hong Kong market is showing signs of recovery after a long downturn. Local cosmetics firm Mao Geping recently raised $300 million in its oversubscribed Hong Kong IPO, while courier group SF Holding raised $749.3 million.

The company's strong brand recognition and market penetration, as well as its diverse IP portfolio, contribute to its investment appeal. Bloks has successfully developed two in-house IP, Magic Blocks and Hero Infinity, and has obtained non-exclusive licenses for approximately 50 renowned IP from IP proprietors or licensors, including Ultraman, TRANSFORMERS, and others. This diverse IP portfolio allows Bloks to offer a wide range of products that cater to different age groups and interests, increasing its appeal to investors.

In conclusion, Bloks' IPO is a testament to the growing demand for assembly character toys and the potential for growth in the Chinese toy market. With its strong brand recognition, diverse IP portfolio, and high market share, Bloks is well-positioned to capitalize on this trend and continue to grow. As the Hong Kong market shows signs of recovery, investors are increasingly looking for opportunities in the consumer goods sector, and Bloks' IPO is an attractive option for those seeking exposure to the growing Chinese toy market.