Shein made its long-anticipated Hong Kong stock market debut on Tuesday, but shares slid by as much as 10% as the fast-fashion giant went public at a valuation of just over $26bn.
Key facts
- Shein began trading on the Hong Kong stock exchange on Tuesday.
- Shares fell by as much as 10%, according to the Guardian, with CNBC reporting drops of 8% to 9%.
- Shares were priced at HK$48.56, valuing the business at just over $26bn.
- The company was once valued at almost $100bn.
- The listing followed failed attempts to go public in the US and UK.
Fast-fashion giant Shein made its long-anticipated debut on the Hong Kong stock exchange on Tuesday, but the flotation opened on a weak note as shares slipped in early trading.
Shares in the China-founded company slumped by as much as 10% during its trading debut, according to the Guardian. CNBC reported the decline at between 8% and 9%.
The Singapore-headquartered company priced its shares at HK$48.56, valuing the business at just over $26bn, according to the Guardian. That is a significant reduction from the company’s earlier valuation of almost $100bn.
The Hong Kong listing came after years of attempts by the company to go public, CNBC reported. The debut followed the firm’s failure to list in the United States and the United Kingdom, according to the Guardian.
Shein has grown into one of the world’s most prominent fast-fashion retailers, and its stock market listing had been closely watched by investors after repeated delays.
Why it matters
Shein's debut is one of the most closely followed listings in the fast-fashion sector, and the sharp gap between its earlier and current valuations signals shifting investor sentiment. The choice of Hong Kong after failed attempts in the US and UK also highlights the regulatory and market hurdles facing major China-linked companies seeking to go public.
Frequently asked questions
How much did Shein's shares fall on its debut?
Shares fell by as much as 10%, according to the Guardian, while CNBC reported declines of between 8% and 9% on the company's Hong Kong trading debut.
What is Shein now valued at?
Shein priced its shares at HK$48.56, valuing the business at just over $26bn, according to the Guardian. The company was once valued at almost $100bn.
Why did Shein list in Hong Kong?
The Hong Kong listing followed the company's failure to list in the United States and the United Kingdom, according to the Guardian, and came after years of attempts to go public.