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Shein targets about $27bn valuation in Hong Kong IPO
Shein plans to sell nearly 280 million shares priced between HK$47.60 and HK$49.50, after a quarterly loss tied to slower sales.
Fast-fashion retailer Shein said it plans to raise up to HK13.86bn, about $1.77bn, when its shares begin trading on the Hong Kong stock market on 1 September. In a Monday filing, the company said it will offer nearly 280 million shares for between HK$47.60 and HK$49.50, valuing the business at almost $27bn at the top of the range.
The company’s targeted valuation is well below the $100bn level it reached in a round of private fundraising in 2022, reflecting weaker sales growth and higher costs, according to BBC Business. Shein has also faced failed listing attempts in the US and London due to regulatory challenges, amid heightened scrutiny tied to its China-linked origins and Singapore headquarters.
Shein’s long-awaited IPO is backed by Goldman Sachs, Morgan Stanley and JP Morgan. It also comes after the company reported it swung to a quarterly loss in July, citing slowed sales following President Donald Trump’s removal of an import duty exemption on small packages, when it lost $99m in the first three months of the year versus net income of $395m a year earlier.
The BBC Business report said uncertainty remains around ongoing US-China tariffs, which are currently paused, even as Shein prepares for the Hong Kong debut.