Published • loading... • Updated
AI and Robotics Drive an IPO Boom in China as Shein Lists in Hong Kong
The listing leaves most of the value with suppliers in southern China, while pre-IPO investors are protected from a steep markdown, according to the prospectus.
- On Tuesday, Singapore-based retailer Shein Global Holdings Ltd will launch its Hong Kong initial public offering , valuing the company at just over $26 billion, roughly one-quarter of its 2022 peak valuation.
- Mounting political scrutiny, tariffs, and competition fueled the decline as investors shifted focus away from e-commerce toward artificial intelligence companies that delivered stronger returns.
- Despite attempts to distance itself from China, Shein's ultra-fast-fashion model relies on thousands of small factories concentrated in Guangzhou, Guangdong, China, which executives could not replicate elsewhere.
- To counter slowing growth, Shein plans to devote 40 per cent of IPO proceeds to technology improvements and offer its manufacturing network services to other brands through the Xcelerator program.
- Artificial intelligence is "leveling the playing field for Shein's competitors," said Sheng Lu, a professor in fashion and apparel studies at the University of Delaware, while Western protectionist policies further constrain expansion.
Insights by Ground AI
23 Articles
23 Articles
Shein shapes up for cut-price IPO as dominance slows
Shein will list in Hong Kong this week in a cut-price initial public offering following two previous failed attempts in London and New York. The Chinese retailer will begin trading in Hong Kong on Tuesday in a debut set to value the firm at around $27bn (£19.8bn), about a quarter of its highest private-market valuation. Shein will offer nearly 280m shares at between HK$47.60 and HK$49.50, expecting to raise about HK$13.6bn. The online retailer…
·London, United Kingdom
Read Full Article
Coverage Details
Total News Sources23
Leaning Left8Leaning Right5Center5Last UpdatedBias Distribution44% Left
Bias Distribution
- 44% of the sources lean Left
44% Left
L 44%
C 28%
R 28%
Factuality
To view factuality data please Upgrade to Premium
