On Tuesday, Shein’s shares declined by 9% during their first day of trading in Hong Kong, as investors expressed concern over setbacks that delayed its listing for an extended period and have weakened its competitive edge.
The Singapore-based company sold about 280 million shares in its IPO, raising roughly HK$13.60 billion (about $1.74 billion) after setting the final offer price at HK$48.56 per share, below the HK$49.5 maximum.
The IPO estimates Shein’s worth at approximately $26.5 billion, down from its private market valuation of $100 billion in 2022.
Shein intends to allocate 40% of the IPO funds to improve its technology infrastructure and another 40% to increase brand awareness and expand its international footprint. The remaining funds will support corporate responsibility projects and other corporate activities, as outlined in its prospectus.
Shein’s debut in Hong Kong follows previous unsuccessful efforts to go public in New York and London. Founded in China and relocating its headquarters to Singapore in 2022, the company initially filed confidentially for a U.S. IPO in 2023. It later considered London, but Beijing refused approval over concerns about risk disclosures related to its China supply chain, which prevented the listing.
Shein, famous worldwide for $5 tops and $10 dresses, has faced a significant devaluation due to recent tariff and duty changes in the U.S. and Europe.
By CEO NA Editorial Staff
