Fast-fashion giant Shein’s shares drop 7% in Hong Kong market debut
The offering raised $1.74 billion and valued the Chinese-founded retailer at $26.5 billion, far below its 2022 private valuation.
- On Tuesday, shares of Shein fell 7% during their Hong Kong Stock Exchange debut. The IPO raised $1.74 billion, valuing the Singapore-headquartered company at about $26.5 billion.
- Shein's Hong Kong listing follows unsuccessful attempts to go public in New York and London. Beijing previously blocked the London offering over risk disclosures tied to the China-founded company's supply chain.
- Once valued at $100 billion in 2022, the company's valuation dropped to $26.5 billion. First-quarter revenue reached $9.05 billion, though Shein reported a $99 million net loss.
- Shein contends with shifting tariff and duty regulations in the West, impacting the retailer known globally for selling $5 tops and $10 dresses.
- Allocating 40% of IPO proceeds to enhance technology capabilities, Shein will use another 40% to boost brand awareness and strengthen its global presence.
101 Articles
101 Articles
Good morning! Poland introduces a ban on mobile phones in schools and Shein goes public in Hong Kong. First, the weather: some showers this morning, mainly in the south and north. This afternoon it will remain dry and the temperature will be 20 or 21 degrees. The wind will come from the west. Are you heading out today? Here you will find an overview of traffic jams and roadworks, and here is everything about the situation on the railways. What c…
Shein, a budget fashion giant, began trading on the Hong Kong Stock Exchange today amid high expectations after raising US$1.7 billion, but its share price plunged by about 10%.
Estimated at nearly $100 billion, Shein is now valued at a quarter of this figure, because the company is facing other challenges, such as fierce competition and commercial tensions. The giant's actions in the fast-fashion Shein industry have suddenly fallen on Tuesday, following much of the expected start on the stock market, after the company has listed...
The share of the Chinese fashion giant significantly loses at the start of trading. Shein is thus even behind the Swedish competitor H&M.
Fast-fashion giant Shein plunges 10% on Hong Kong debut
In its inaugural trading day in Hong Kong, fast-fashion retailer Shein experienced a ten percent drop in stock prices. The company successfully secured US$1.7 billion through its initial public offering, although its valuation now faces challenges at US$26.3 billion, a decline from previous private fundraising rounds in 2022. Despite plans to enhance technology and expand globally, analysts foresee hurdles from competition and new import duties …
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