Fast-fashion group Shein plans to pay up to HK$306 million, or nearly $39 million, in total underwriting fees for its upcoming Hong Kong initial public offering, according to a filing.
The total fee rate is estimated at roughly 2.2% of the $1.77 billion in fresh capital the company aims to raise in the listing. The rate is lower than recent large IPOs in Hong Kong, where China’s autonomous driving firm Momenta Global paid about 3.4% in fees for its $752 million listing in July.
Shein’s offering, which values the company at approximately $27 billion, has expanded its roster of underwriters to 10 banks. The group includes Goldman Sachs, Morgan Stanley, and J.P. Morgan, which were retained from earlier efforts to list in the U.S. and Britain. Haitong International and UBS were added when the initial advisor lineup for the Hong Kong listing was disclosed, while HSBC, Bank of America Securities, Banco Santander, and East West Bank joined subsequently.
The company disclosed a discretionary incentive fee for banks, though the exact rate was not specified. The expanded underwriting team reflects efforts to address valuation pressures amid heightened tax and regulatory challenges, as well as intensifying competition in the fast-fashion sector.
The filing was published on August 23–24, with the exchange rate cited as $1 = 7.8372 Hong Kong dollars.
