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Shein to compensate investors after HK IPO pricing fall
Shein’s Hong Kong IPO targets up to $1.77 billion, while it also plans payments and extra shares that could total as much as $3.5 billion to certain existing investors.
Shein has launched its long-delayed Hong Kong IPO, seeking up to $1.77 billion at a valuation of $27 billion, but the pricing implies a steep drop versus the company’s earlier private-market valuation, according to Yahoo Finance.
The fast-fashion group is selling 280 million shares at $6.10 to $6.35. That values the company more than 70% below the $98.2 billion it reached in a 2022 private funding round, a decline that Yahoo Finance notes has left some investors expecting payouts tied to IPO conversion terms.
As a result, Shein plans to pay existing investors as much as $3.5 billion to compensate them for what the outlet describes as a valuation collapse, nearly doubling the fresh capital being raised. The company’s bill includes up to $2.2 billion in cash plus 19.6 million shares issued free of charge, with about $1.33 billion of additional payments going to the same investor group.
Shein said about 80% of IPO proceeds will be used for technology and expanding the brand globally. Yahoo Finance also pointed to slowing growth, with revenue growth dropping from 41.1% in 2023 to 20.7% in 2024 and to 8% in 2025, alongside a first-quarter net loss of $99 million versus a $395 million profit a year earlier.