Shein has launched its initial public offering on the Hong Kong stock exchange, targeting a valuation of approximately $26.5 billion. The offering, which aims to raise about $1.7 billion, is priced at HK$48.56 per share, near the midpoint of the HK$47.60 to HK$49.50 range.
The subscription book was fully covered by Tuesday, with anchor investors including Boyu Capital, Tiger Global, and General Atlantic subscribing to roughly $383 million in shares. Current shareholders Tencent, Greenwoods, Taikang Life, and UBS Asset Management also participated in the offering. Prudential Brokerage’s Alvin Cheung noted that Shein’s decision to list now, rather than during its 2022 peak valuation of nearly $100 billion, raises questions about investor demand amid declining growth.
The company, which operates in approximately 160 countries and sells items such as dresses for $5 and jeans for $10, plans to use about 80% of the proceeds to enhance technology and expand its global reach. First-half revenue growth is expected to align with the 1.1% increase recorded in the first quarter, while operating margins are projected to decline slightly.
Shein’s IPO follows four years of attempts to go public in New York and London before pivoting to Hong Kong. The listing comes after Asian markets experienced a correction in July, adding further context to the timing of the offering.
