Fast-fashion giant Shein’s shares drop 7% in Hong Kong market debut
The fast-fashion retailer raised $1.7 billion, but investor concerns over tariffs, regulation and slowing growth pushed its valuation far below 2022 levels.
- 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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Shein was previously valued at $100 billion, but based on the current listing, it is now worth about a quarter of that.
Fast-fashion giant Shein fell 10% after its stock market debut Shein raised <p>$1.7 billion during its IPO, but its shares fell 10% after its Hong Kong debut. The company was valued at $26.3 billion.</p>
Shein-Börsengang: Evaluation Drops From 100 to 26 Billion – What This Means for the Fashion Industry
Shein starts off in Hong Kong with a price loss, the valuation is three quarters below 2022. The end of duty-free travel is at the core of the business model.
Il Tempo
Milan, 1 set. (askanews) - The giant of the fast-fashion Shein debuted on the stock market in Hong Kong in a session in which his shares lost over 9%. To weigh not only market problems, but also structural problems of the group according to experts, after Shein saw his listing plans fail in New York and London due to regulatory obstacles.
The long-awaited IPO of the online fashion retailer Shein in Hong Kong has started for investors with a damper. On the first trading day of Tuesday, the stock of the group known for extremely cheap clothing fell temporarily by up to ten percent below its issue price and later tended to decline by four percent. Investors were concerned that the business model is being undermined by new customs and tax regulations in the US and Europe.
The fast fashion online retailer Shein has become a strong competitor of established companies. The business has recently been crisising. Now the IPO in Hong Kong has failed.
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