Fast-Fashion Giant Shein Shrinks Value to $27 Billion, at Best, in Hong Kong IPO
HONG KONG, Aug 24 (Reuters) - Online fast-fashion retailer Shein's valuation has dropped by around 70% from its private market peak four years ago, as it aims to raise up to HK$13.86 billion ($1.77 billion) in its Hong Kong IPO launched on Monday.
Online fast-fashion retailer Shein, known for selling affordable clothing items worldwide, has reduced its valuation to $27 billion in its Hong Kong IPO. The company, which was valued at $100 billion four years ago, will raise up to HK$13.86 billion ($1.77 billion) by selling 280 million shares. The significant drop in valuation is attributed to concerns over slowing growth, rising costs, and changing market conditions.
Shein's new valuation is around 0.7 times its forecast sales, which is more expensive than its European competitors but cheaper than its European rival, H&M and Zara owner Inditex.
Brief written by urgent.news from The Japan News by The Yomiuri Shimbun's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 5 other outlets
- Fast fashion giant Shein valued at up to US$27 billion in Hong Kong IPO channelnewsasia.com
- Fast fashion giant Shein valued at up to US$27 billion in Hong Kong IPO nst.com.my
- Shein seeks up to $2.3 billion in long-awaited Hong Kong IPO straitstimes.com
- Shein targets US$27b valuation with Hong Kong IPO news.rthk.hk
- Shein Seeks Up to $1.8 Billion in Hong Kong IPO bloomberg.com
