Shein shares slide 10% in long-awaited Hong Kong trading debut
The online fashion retailer's shares opened at HK$48.56, matching their IPO price, before falling to HK$43.80.
Shein's shares plummeted around 10% during its Hong Kong debut, trading at HK$48.56 after the initial public offering raised US$1.7 billion. The Chinese fast-fashion retailer's valuation now stands at $26.5 billion, far below its 2022 peak of nearly $100 billion. Shein's stock was subscribed at modestly higher rates for both local and international portions of the offering.
Analysts note Shein's slower revenue growth, mounting tariff fees, and heightened regulatory scrutiny as key concerns impacting its IPO valuation. Revenue declines and a loss in Q1 2024 further dampened investor sentiment. Despite expanding its third-party marketplace and acquiring brands like Everlane, Shein faces hurdles from higher logistics costs and waning consumer spending power in developing markets.
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- Shein shares slide 10% in long-awaited Hong Kong trading debut channelnewsasia.com
- Shein shares slide 10% in long-awaited Hong Kong trading debut freemalaysiatoday.com
