Shein's up to US$1.8 billion Hong Kong IPO order book covered, sources say

Online fast-fashion giant Shein is nearing its long-awaited Hong Kong stock market debut, with its initial public offering to raise up to $1.8 billion reportedly fully covered by investor demand. The company launched its share sale on Monday, seeking a valuation of up to $27 billion.

Shein is offering 280 million shares at a price range of HK$47.60 to HK$49.50 each. The final share price is expected to be announced on Monday, with the stock scheduled to commence trading on the Hong Kong Stock Exchange on September 1. This IPO valuation represents a significant decrease from its peak private market valuation of nearly $100 billion in 2022.

The company, known for its inexpensive clothing like $5 dresses and $10 jeans sold in approximately 160 countries, faces considerable headwinds. Analysts point to potential challenges in its core markets of the US and Europe that could impact growth prospects. Furthermore, Shein is navigating a complex landscape of environmental, social, and governance (ESG) concerns that have led to regulatory investigations and fines in various countries.

Previous attempts by Shein to list in New York and London were hampered by investor and political criticism regarding its environmental, labor, and governance standards. The company is currently under investigation by the European Commission and the US Federal Trade Commission. Past probes have resulted in fines in France for alleged fake discounts and in Italy for greenwashing, as regulators intensify scrutiny on fast fashion practices. A spokesperson for Shein stated the company upholds "high standards of corporate governance, transparency and accountability."

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high standards of corporate governance, transparency and accountability