Shein's Hong Kong IPO, worth up to $1.8 billion, has been fully covered by investor demand, according to two sources familiar with the matter. The fast-fashion retailer priced the offering at up to a $27 billion valuation, well below its 2022 private-market peak, as it works through years of regulatory and governance scrutiny.
Order book covered as debut nears
Shein's Hong Kong IPO book has been fully covered by investor demand, two sources with knowledge of the matter told Reuters. The order book brings the online fast-fashion retailer closer to a long-awaited stock market debut, even as it faces growing business and regulatory challenges.
Shein launched the new share sale on Monday, valuing the company at up to $27 billion. Investor orders have come from existing shareholders as well as China-focused and multi-strategy funds, according to the sources, who declined to be named because they were not authorized to speak to the media. A Shein spokesperson did not immediately respond to a request for comment.
Pricing and timeline
The Singapore-based, China-founded company is selling 280 million shares at HK$47.60 to HK$49.50 apiece, which would raise $1.8 billion at the top of the range, according to company filings. The final price is due to be unveiled Monday, and the stock is scheduled to begin trading on the Hong Kong exchange on September 1.
That valuation sits nearly 70% below the almost $100 billion private-market mark Shein reached in 2022. The company built its business selling $5 dresses and $10 jeans to shoppers in about 160 countries, but analysts say growing headwinds in its core U.S. and European markets could weigh on its growth prospects.
Regulatory scrutiny still hangs over the listing
The IPO arrives as Shein works to address environmental, social, and governance concerns that have triggered regulatory investigations and fines in several countries, complicating earlier listing attempts. Over the past four years, the company tried to list in New York and London but ran into investor and political criticism over its environmental, labor, and governance standards.
Shein is under investigation by the European Commission and the U.S. Federal Trade Commission. Previous probes resulted in fines in France over alleged fake discounts and in Italy over greenwashing, as fast-fashion sellers face increased scrutiny from regulators. According to Reuters, a Shein spokesperson said the firm maintained "high standards of corporate governance, transparency and accountability."
Source: Reuters via Investing.com
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