Shein postpones Hong Kong debut to September, SCMP reports
The retailer plans to introduce multiple cornerstone investors, according to the report.
On August 20, the South China Morning Post (SCMP) reported that Shein has postponed its Hong Kong market debut to September. This delay came after Shein experienced a slight setback in accepting investor orders for the fast-fashion retailer’s IPO at a lower valuation. The company plans to involve multiple cornerstone investors, although most of these positions are expected to be filled by existing shareholders, according to sources familiar with the matter.
Reuters had previously reported on August 17 that Shein was targeting a Hong Kong IPO launch later in the week at a valuation that was only a quarter of the previously reported US$100 billion. At the time, the IPO was expected to be valued at around US$25 billion, a significant drop from the initial speculation of a valuation ranging between US$30 billion and US$40 billion following the start of investor meetings in August.
Shein, founded in China in 2012, is renowned for selling affordable clothing, such as its popular US$5 dresses and US$10 jeans, to customers in approximately 160 countries. The SCMP article further noted that the company now plans to commence book-building activities starting on August 24. However, it had initially aimed to complete the entire IPO process by the end of August. Investment banks involved in the deal are reportedly considering arranging their own funds to serve as cornerstone investors.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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