Fast-fashion giant Shein’s shares drop 7% in Hong Kong market debut
Shares fell as much as 10% as investors weighed slowing growth, tariff pressure and regulatory scrutiny after the company raised $1.7 billion.
- 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.
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292 Articles
Online retailer Shein failed to convince investors on its first day of trading in Hong Kong on Tuesday. Consequently, the long-awaited IPO of Shein, known for cheap clothing and other products, has resulted in a minor disappointment.
The shares came to mark the $43.72 Hong Kong dollars before recovering virtually all the land lost at closing.
Shein, known for its extremely low prices and fast-growing clothing, claims that the funds raised will help finance its technological capabilities and strengthen its international presence.
Fashion Retailer's Long- Awaited Stock Debut Fizzles
Shein finally made it to the trading floor in Hong Kong, and investors mostly shrugged. Shares of the online fast-fashion giant slipped as much as 10% in early trading on Tuesday, putting its value near $24 billion—dramatically below the roughly $100 billion peak it once boasted in 2022, per...
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