Shein prices Hong Kong IPO below top end of range, raises $1.74 billion

Hong Kong-based fast-fashion retailer Shein priced its IPO below the top of the marketed range, raising $1.74 billion from the sale of 280 million shares at HK$48.56 per share. The Hong Kong listing saw a 5.63 times oversubscription, while the international portion was subscribed 2.59 times. Strategist Kenny Ng of China Everbright Securities International suggested the response was relatively mild.

Some investors expressed caution regarding the company's valuation due to geopolitical tensions and fluid international trade policies. Shein's shares were down more than 10% in gray-market trading on Monday. The proceeds from the IPO will primarily be used to enhance technology and expand the brand's global presence. The company has been addressing ESG concerns, which have led to regulatory investigations and fines in several countries, including France and Italy.

Shein has also faced an investigation by the European Commission and the U.S. Federal Trade Commission.