Fast-fashion giant Shein shrinks value to up to $27 billion in Hong Kong IPO
Shein will pay up to HK$306 million in underwriting fees as it expands its banking syndicate and seeks to offset a sharp valuation drop for investors.
- On Monday, Shein announced it would pay up to $3.5 billion to selected existing investors to compensate them for a sharp slide in valuation ahead of its Hong Kong IPO.
- The payments address discrepancies between the IPO's projected $27 billion valuation and prior funding rounds, including a $98.2 billion valuation in 2022, which triggered protections for preferred shareholders.
- Shein's prospectus on Monday detailed an expanded underwriter team costing $39 million in total fees, while the company aims to raise up to $1.77 billion through the Hong Kong offering.
- Entities linked to Tiger Global, General Atlantic, and Mubadala are entitled to cash and share payments, which Shein said will be funded from its own financial resources rather than IPO proceeds.
- Shein's underwriting fee rate of roughly 2.2% appears lower than recent Hong Kong listings; Momenta Global paid around 3.4% in fees during its July offering.
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Shein Seeks Up to $1.8 Billion in Hong Kong IPO at $27 Billion Valuation - The fast-fashion retailer’s targeted valuation is sharply below its private-market peak, as slowing growth and the loss of import-tax exemptions in Western markets weigh on its low-cost model
Shein targets $1.8 billion Hong Kong IPO at $27 billion valuation, down from $100 billion peak - Tech Startups
Shein is heading to Hong Kong’s public market with a valuation that tells a very different story from the one investors heard four years ago. The Chinese-founded fast-fashion giant is seeking to raise up to HK$13.86 billion ($1.77 billion) through […] The post Shein targets $1.8 billion Hong Kong IPO at $27 billion valuation, down from $100 billion peak first appeared on Tech Startups.
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