Shein Prices Hong Kong IPO at Midpoint of Range, Raises $1.74 Billion
The offering raised $1.74 billion and comes after Shein abandoned plans for New York and London listings.
- On Monday, Shein priced its Hong Kong initial public offering at the midpoint of its range, raising $1.74 billion and valuing the fast-fashion retailer at approximately $26.3 billion ahead of Tuesday's trading debut.
- Regulatory scrutiny in New York and London derailed previous IPO plans, forcing the retailer to pivot toward Hong Kong after Beijing's approval last month; the valuation remains well below the $98.2 billion commanded during 2022 fundraising.
- Shein reported a $2.06 billion full-year net profit last year but recently swung to a $99 million quarterly loss as the United States scrapped an import duty exemption on small packages.
- Facing intense competition from Chinese low-cost retailers Temu and AliExpress, Shein navigates a maturing market; Lorraine Tan, Morningstar's Asia director of equity research, said 'geopolitical risks' and tariff changes are likely to limit investor excitement.
- The European Union recently imposed a duty of €3 per item on packages valued at less than €150, contributing to regulatory pressures the company faces in the United States and Europe, its largest markets.
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DECRYPTAGE - Fragmented by regulatory barriers and repeated scandals, China's ultra-fast-fashion giant is worth only $26.5 billion, for its first rating in Hong Kong.
The Asian group will fall within the middle of the expected range and will debut on the stock exchange with a price equivalent to 5.34 euros per share.
Shein valued at US$26.3bil in Hong Kong market debut
Fast-fashion giant Shein raised US$1.7 billion in its long-awaited Hong Kong initial public offering. (EPA Images pic)HONG KONG: Fast-fashion giant Shein raised US$1.7 billion in its long-awaited Hong Kong initial public offering, valuing the online retailer at around $26.3 billion, the company said Monday.Known for its ultra-low prices and rapidly produced clothes, the Chinese-founded behemoth's stock sale in the Asian financial hub comes after…
After four years and two previous attempts, Shein makes its stock market debut in Hong Kong this Tuesday. The timing is unfavorable: Shein's business model is under fire in Europe and the US.
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