Shein aims for almost $27bn valuation in stock market debut

Fast-fashion retailer Shein aims for a stock market valuation of almost $27bn when it debuts on the Hong Kong stock exchange on September 1st. This follows unsuccessful attempts to list in the US and London due to regulatory concerns, with Shein headquartered in Singapore but founded in China. The company, known for its ultra-cheap clothing, has gained global popularity, with customers in more than 150 countries.

Shein plans to offer nearly 280 million shares priced between HK$47.60 and HK$49.50, raising $1.77bn and valuing the company at $26.8bn, a significant drop from its $100bn valuation in 2022. The IPO is backed by Wall Street firms Goldman Sachs, Morgan Stanley, and JP Morgan, and it is expected to draw higher valuations in Hong Kong than London due to regulatory scrutiny.

Shein's stock market entry will test investor confidence in the fast-fashion industry amid intense competition. In July, Shein reported a quarterly loss of $99m as sales slowed after the US removed an import duty waiver on small packages. The company also faced challenges from the Iran war, increased tariffs, and rising costs. Some investors question whether higher costs and regulatory hurdles will impact Shein's ability to deliver goods swiftly and cheaply.