Shein just went public at about 25% of its peak valuation
Shein's valuation ahead of the IPO was $26.4 billion, down from its $100 billion private valuation in 2022.
Shein, the fast fashion giant, went public on Tuesday, trading at a fraction of its previous record valuation. The company offered 280 million shares at a price of $6.19 each, raising over HK$13.2 billion. Its valuation at the IPO was $26.3 billion, down from its private valuation of $100 billion in 2022, according to the Wall Street Journal.
Shein, headquartered in Singapore, initially faced a bumpy start, with the stock losing nearly 9% of its IPO price on its first day of trading. Despite this, the stock has since recovered slightly, trading at around HK$46.60 by noon local time. In its IPO prospectus, Shein stated it plans to allocate 40% of proceeds to improve its technology and 40% to boost global brand awareness.
The company has seen significant growth in recent years, with the US being its largest consumer market and the UK experiencing substantial growth in 2024. However, Shein has faced challenges in its IPO year, including trade restrictions and investigations into potential unethical labor practices and false sustainability claims by consumer watchdogs.
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