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Shein delays Hong Kong IPO to September after slower order intake
The IPO valuation is expected around $25 billion, down from earlier $30 billion to $40 billion estimates, Reuters and the SCMP cited sources said.
Shein has pushed back its Hong Kong market debut to September after taking a slight delay in investor orders for its fast-fashion IPO at a reduced valuation, the South China Morning Post reported, citing sources familiar with the matter, according to Reuters.
The company plans to introduce multiple cornerstone investors, with most positions expected to be filled by existing shareholders, the report said. Reuters previously reported Shein was aiming to launch the IPO later this week, following investor meetings.
Shein, founded in 2012, had been expected to price at a valuation that was just a quarter of the nearly $100 billion figure seen in a prior share sale four years ago. Reuters reported the valuation was likely around $25 billion for the Hong Kong IPO, down from the $30 billion to $40 billion range that had been discussed earlier in August.
According to the SCMP, Shein now intends to start book-building from August 24, after originally targeting completion of the IPO process by the end of August. The article also said investment banks involved in the deal were considering arranging their own funds as cornerstone investors.