Shein Plunges In Hong Kong Debut As Growth Worries Mount
The Singapore-headquartered fashion giant’s lackluster IPO gives it a market cap of $24 billion–an almost 80% fall from the nearly $100 billion peak valuation reached after a 2022 funding round.
Shein Global Holdings made its Hong Kong debut with a lackluster initial public offering, valuing the company at around $24 billion to $26.5 billion. This is significantly lower than its peak private valuation of nearly $100 billion in 2022. According to Forbes, the company's market cap fell by almost 80% from its peak valuation.
The shares fell as much as 10% to HK$43.72 ($5.57) in early trading, compared with the IPO price of HK$48.56, before recovering some of the losses, as reported by The National UAE and The National Business. Shein raised HK$13.6 billion in the offering. The listing is seen as a test of investor appetite for internet retailers, an industry that has struggled recently amid inflation, trade disruption, and consumer caution.
Vey-Sern Ling, managing director at Union Bancaire Privee, attributed the sharp share price fall to Shein's well-known challenges, including slowing growth, rising losses, and stiff competition from e-commerce and fast-fashion players. Investing.com reported that Shein's revenue growth has slowed dramatically, from 41.1% in 2023 to 1.1% in the first quarter of 2026, and the company reported a $99 million first-quarter loss.
Brief written by urgent.news from Forbes, The National UAE, The National Business, Investing.com, WSJ Markets — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.
