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Shein plans to raise $1.77 billion in Hong Kong initial public offering as valuation drops from previous highs.

Shein is planning to raise up to $1.77 billion in Hong Kong dollars during its initial public offering. The fast-fashion retailer is selling approximately 280 million class B shares, with a final price to be announced on August 31. The company is expected to be valued at nearly $27 billion at the top of its pricing range, a significant decrease from its 2022 valuation of $98.2 billion. This decline in valuation is attributed to a slowdown in rapid growth, pressure on profitability, and the loss of a U.S. import-duty exemption. The company has faced pressure from rivals like Temu and has struggled to maintain momentum with shoppers under the age of 35. After failed attempts to go public in London and New York, Shein received approval from the China Securities Regulatory Commission in July. Investors have noted that the company may have missed its prime window for listing as the market is currently dominated by AI and chip firms.

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