Shein valued at $26.3 billion after Hong Kong listing

Shein has made its long-awaited stock-market debut in Hong Kong with a valuation of about $26.3 billion, far below the $98.2 billion value it reached in private funding rounds in 2022.

The fast-fashion company said it raised $1.7 billion by offering 280 million shares at 48.56 Hong Kong dollars each. That price fell below the previously announced maximum of 49.50 Hong Kong dollars. Trading in the shares is set to begin on Tuesday.

Shein became a global fast-fashion force by using social media to attract young customers with very low prices and rapidly produced clothing. Its growth has since slowed, while regulators in its biggest markets, Europe and the United States, have increased scrutiny of its environmental impact and allegations of human rights abuses. The company also faces stronger competition from Chinese low-cost platforms such as Temu and AliExpress.

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zero tolerance

Executive chairman Donald Tang told AFP last year that Shein maintained “zero tolerance” toward forced labor. The company said it would use the IPO proceeds to improve its technology base and expand internationally. Founded in China and now headquartered in Singapore, Shein received Beijing’s approval last month to list in Hong Kong after plans for offerings in New York and London failed to proceed.

Shein reported $2.06 billion in net profit last year but recently recorded a quarterly loss of $99 million after the United States ended a duty exemption for small shipments. The European Union also introduced a 3-euro charge on packages valued below 150 euros. Morningstar Asia equity research director Lorraine Tan said weaker market sentiment reflected slower revenue growth, geopolitical challenges and increased competition.

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Market sentiment toward Shein has deteriorated, reflecting slower revenue growth driven by a host of geopolitical challenges and increased competition.