Shein to list on Hong Kong Stock Exchange Sept 1, raising $1.77 billion
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Shein will begin trading on the Hong Kong Stock Exchange on September 1, aiming to raise about $1.77 billion. The listing follows a sharp valuation decline from $100 billion in 2022 to $27 billion at the top of the IPO range. The company reported a $99 million net loss in the first quarter.
Key Facts
- Shein will offer about 280 million shares at HK$47.60 to HK$49.50 each in its Hong Kong IPO.
- At the top of the price range, Shein's market value would reach $27 billion, down from $100 billion in its 2022 private funding round.
- Shein reported a net loss of $99 million in the first quarter, compared with a $395 million profit a year earlier.
- Goldman Sachs, Morgan Stanley, and JPMorgan are advising Shein on the listing.
- The IPO follows failed attempts in the US and London due to regulatory hurdles.
IPO Terms
Shein will offer about 280 million shares at HK$47.60 to HK$49.50 each, according to Monday's filing. At the top of the range, the company's market value would reach $27 billion. That is far below the $100 billion valuation from its 2022 private funding round. The company plans to raise about $1.77 billion from the offering.
Financial Pressures
Shein's sales growth slowed after US President Donald Trump removed the duty-free exemption for small packages. The company posted a net loss of $99 million in the first quarter, compared with a $395 million profit a year earlier. Rising costs and changing US trade policies pose significant risks to Shein's low-price model. The company is considering price increases in the US market to offset higher tax and customs costs.
Advisors and Market Context
Goldman Sachs, Morgan Stanley, and JPMorgan are providing advisory and brokerage support for the IPO. The Hong Kong listing follows unsuccessful attempts in the US and London due to regulatory obstacles. The war in Iran has negatively affected consumer demand, increased costs, and caused delivery delays in some markets. Investor reaction on September 1 will be critical for Shein's future valuation.
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Shein to list on Hong Kong Stock Exchange Sept 1, raising $1.77 billion
