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

Chinese fast-fashion company Shein Global Holdings Ltd, once valued at over US$23 billion, has experienced a significant decline in its wealth. The company's CEO, Sky Xu, whose personal wealth is tied to his 30% stake, saw it drop to approximately US$8 billion following the company's reduced IPO. This comes after Shein faced various challenges including tariffs, political scrutiny, and increased competition.

The IPO, expected to take place on September 1 in Hong Kong, is set to list at just over a quarter of its 2022 valuation of US$100 billion. Xu's wealth decline is also attributed to poor timing, as other AI companies have recently gone public, stealing the spotlight and resulting in new billionaire creations. The overall performance of Hong Kong IPOs has been mixed, with some AI companies achieving strong first-day gains.

Fashion and apparel studies professor Sheng Lu noted that the market direction has changed, no longer favoring Shein. The company faced difficulties in gaining traction in New York and London due to concerns about labor practices. They moved their global headquarters to Singapore but still needed Chinese regulators' approval for the IPO.