Shein’s Hong Kong IPO pricing values company at US$26.5b: sources
Demand from retail investors for the retailer’s stock has not been overly strong: analyst
Online fast-fashion giant Shein is set to launch its Hong Kong IPO on Monday, with the company pricing the offering near the midpoint of its marketed range, according to two sources. The IPO is expected to raise US$1.7 billion and value the brand at around US$26.5 billion, as per the information given by sources under condition of anonymity.
The company will issue shares priced at HK$48.56, close to the midpoint of its HK$47.60 to HK$49.50 range, leading to a raise of about HK$13.6 billion (US$1.73 billion). This valuation puts Shein at about one-quarter of its private market peak in 2022 and below the US$66 billion valuation it reached in a 2023 fundraising round. Despite strong demand from institutional investors, retail investor enthusiasm for the IPO has been reported as not overly strong by analyst Alvin Cheung, who attributes this to the weakening market sentiment and Shein's shrinking growth prospects amid rising costs and fierce competition in the online retail space.
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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