Fast-fashion giant Shein’s shares drop 7% in Hong Kong market debut
The fast-fashion retailer raised $1.7 billion, but investor concerns over tariffs, regulation and slowing growth pushed its valuation far below 2022 levels.
- 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.
185 Articles
185 Articles
Il Tempo
Milan, 1 set. (askanews) - The giant of the fast-fashion Shein debuted on the stock market in Hong Kong in a session in which his shares lost over 9%. To weigh not only market problems, but also structural problems of the group according to experts, after Shein saw his listing plans fail in New York and London due to regulatory obstacles.
The long-awaited IPO of the online fashion retailer Shein in Hong Kong has started for investors with a damper. On the first trading day of Tuesday, the stock of the group known for extremely cheap clothing fell temporarily by up to ten percent below its issue price and later tended to decline by four percent. Investors were concerned that the business model is being undermined by new customs and tax regulations in the US and Europe.
Online retailer Shein has finally gone public after years of preparation, but investors have been unimpressed. Shares plunged in Hong Kong on its debut, leaving the company's valuation well below the record highs of its heyday.
China's fast fashion giant Shein raised about 1.7 billion dollars with the Hong Kong Stock Exchange listing, where shares started to be traded today. Chinese financial media reports it. (ANSA)
The Chinese fashion giant online did not convince investors with its price, despite the discounts that applied to their valuation, up to 23 billion euros. In front it has the challenge to demonstrate its profitability with products of very low cost Read
Coverage Details
Bias Distribution
- 46% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
