Shein’s Hong Kong IPO pricing values company at US$26.5b, say sources
Demand from retail investors for the retailer’s stock has not been overly strong: analyst
Shein, the online fast-fashion retailer, is set to price its HK$1.7 billion IPO at HK$48.56 per share, valuing the company at approximately HK$26.5 billion, according to sources. The offering, which will be fully subscribed, confirms a Reuters report from last week that the IPO would value Shein at around one-quarter of its 2022 private market peak.
Despite strong demand from institutional investors, retail investor interest has been relatively muted, with analyst Alvin Cheung attributing this to a weakening enthusiasm for new listings in Hong Kong following an Asian market correction in July. Shein's growth prospects are also being called into question amid rising costs and fierce online competition.
The company plans to allocate most of the IPO proceeds to enhance its technology and expand its global reach, while also paying up to HK$3.5 billion in cash to certain investors who purchased special shares in previous private funding rounds.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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