Shein Debuts in Hong Kong as Shares Fall
Shein made its stock market debut in Hong Kong on Tuesday. The company is a fast-fashion brand founded in China.
It is now headquartered in Singapore. The debut completed a long-delayed initial public offering.
Shein priced its shares at HK$48.56 each. This valued the company at just over $26 billion.
The company raised $1.7 billion in total. It sold about 6.6% of its enlarged shares.
Shein shares fell by as much as 10% during the debut. They later recovered to about 4% below the offer price.
Investors pointed to tariffs, higher trade costs and slower growth. They also cited regulatory risks.
The decline came after four years of public backlash over labor concerns. Shein earlier tried and failed to list in New York and London.
Shein was once valued at almost $100 billion. That is much higher than its new $26 billion valuation.
Key Terms 3
- IPO Initial Public Offering, when a company first sells shares to the public.
- valuation The estimated total worth of a company.
- HK$ Hong Kong dollar, the currency used in Hong Kong.