Shein CEO’s wealth slumps $15 billion after whittled-down IPO

Shein Global Holdings Ltd. experienced a significant decline in its net worth after its initial public offering (IPO), dropping $15 billion since 2022. This reduction in wealth came as the Chinese fast-fashion business faced challenges such as tariffs, political scrutiny, and increased competition. The IPO took place on Tuesday in Hong Kong, with the company priced at just over a quarter of its original valuation of $100 billion in 2022.

Sky Xu, Shein's reclusive CEO, owns a 30% stake in the company, and his net worth has plummeted to approximately $8 billion following the IPO. The decline in Xu's wealth is attributed to poor timing, as the market shifted focus towards artificial intelligence companies, which have attracted strong investor interest and created new billionaires.

International-equities portfolio manager Sam Wyatt noted that e-commerce is now less appealing to investors compared to AI. The overall performance of Hong Kong IPOs has been mixed, with some AI companies experiencing impressive first-day gains, while others, like beverage maker Eastroc Beverage Group Co. and pig breeder Muyuan Foods Co., have seen their stock prices fall below listing prices.