Shein seeks to raise $1.7 billion in Hong Kong IPO with a valuation of $26 billion
Shein is set to list in Hong Kong on Tuesday, seeking to raise $1.7 billion in an initial public offering. The company's valuation is approximately $26 billion, a decrease of more than 70% from its peak valuation of $98.2 billion in 2022. This lower valuation reflects investor concerns regarding competition, geopolitical pressure, and sustainability. The company's net income fell 39% last year, and losses reached $99 million in the first quarter of this year. These figures follow the removal of the de minimis exemption in the US and the European Union, which previously allowed the Kong-based retailer to ship small parcels tariff-free. The company faces pressure from both Western governments and Beijing. While the company has consistently denied using forced labor in China's Xinjiang region, a Congressional Commission in 2023 reported credible allegations of the company's use of underpaid and forced labor in that region. To address slowing growth and competition from rivals like Temu, Shein launched a marketplace for third-party vendors in 2023. However, order frequency has remained steady at approximately four times per year over the last three years.
Sources
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Shein prices Hong Kong IPO below top end of range, raises $1.74 billion
Reuters
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Shein’s dressed for its long-awaited market debut in Hong Kong. But the party may be over
CNN