Shein is seeking to raise up to $1.8 billion in its long-awaited Hong Kong initial public offering, with a listing targeted for September 1. This comes after the fast-fashion retailer cut its company valuation, which is now expected to be around $26-27 billion. This valuation is a sharp decrease from the nearly $100 billion it achieved in a private fundraising round in 2022.
The company is scheduled to launch its IPO on August 24 and aims for the September 1 listing, though slight delays are possible due to market conditions. This reduced valuation reflects challenges such as slower growth and increased regulatory scrutiny. UBS Asset Management is reportedly a new cornerstone investor, and several of Shein's existing shareholders are also in discussions to join as cornerstone investors.
Shein, founded in China and now headquartered in Singapore, initially aimed for a valuation of at least $30 billion but faced pushback from investors. The company may also offer payouts and share adjustments to early investors to help reduce their investment costs. Book-building is expected to start on August 24, with the overall IPO process initially planned to conclude by the end of August.
