Shein’s Value Down $5 Billion, Among HK’s Worst Post-IPO Weeks
Shein Global Holdings Ltd. has lost about $5 billion in market value since its initial public offering as it finished one of the worst opening weeks after a major Hong Kong listing, underscoring investor concerns over the fast-fashion retailer’s growth outlook.
HONG KONG - Shein Global Holdings saw its market value plummet by approximately US$5 billion (S$6.3 billion) since its initial public offering (IPO), marking one of the worst opening weeks for a major Hong Kong listing, according to Bloomberg. Despite a 3.2% rise on September 7, the company's shares closed at a 19% discount to the HK$48.56 offering price, signaling investor skepticism about the fast-fashion retailer's growth prospects.
Shein's market value has now dropped to around US$21 billion from roughly US$26 billion following the listing process, which had already lasted years. The company's shares have performed second-worst among companies that raised at least US$1 billion in a Hong Kong listing, trailing only Baidu's 19.9% plunge, as per Bloomberg's data.
Analyst Catherine Lim from Bloomberg Intelligence explained that Shein's decline is primarily driven by company-specific concerns, such as slower expansion, higher tariffs, and tighter regulations. However, the overall weakness also reflects broader skepticism towards cross-border e-commerce models amidst escalating tariffs and regulatory changes.
The retailer's slow growth, marked by a US$99 million loss in Q1 2025 compared to a US$395 million profit a year earlier, further fuels investor concerns.
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- Shein’s value down $6.3b, among HK’s worst post-IPO weeks straitstimes.com
- Shein’s Value Down $5 Billion, Among HK’s Worst Post-IPO Weeks businessoffashion.com
