appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Zoe SL Chan

Shein Global Holdings plunged as much as 10 per cent in its Hong Kong trading debut on Tuesday after raising HK$13.6 billion (US$1.7 billion), further shaking market confidence in the company’s valuation.
The shares opened flat at the offer price of HK$48.56 before falling as much as 10 per cent to HK$43.72. They later pared most losses, trading at HK$48.50 by market close – a 0.1 per cent drop.
Shein founder Sky Xu Yangtian attended the listing ceremony but remained low profile. He did not give any speeches or interviews. Instead, chief financial officer Leigh Gui spoke on behalf of the company.
“This listing marks a new beginning for Shein,” Gui said. “Moving forward, we will continue to innovate while grounding our operations in compliance, transparency and ESG principles to bring fashion to consumers worldwide.”
Shein’s Hong Kong public offering was oversubscribed 4.6 times, while the international offering was oversubscribed 1.6 times.

On Monday evening its shares closed 13.1 per cent lower on the grey market at HK$42.2 after dropping as much as 28 per cent, according to Futu Holdings data. With a board lot size of 100 shares, each lot yielded a loss of HK$636, excluding transaction fees.
Shein priced shares for its Hong Kong listing at just above the midpoint amount it had set.
The fast-fashion retailer sold 280 million shares at HK$48.56 each, according to an exchange filing Monday, valuing the company at slightly over US$26 billion.
That would be a significant markdown from its peak valuation of nearly US$100 billion in 2022, as well as its Series D+ funding valuation of around US$64 billion in 2023.
To compensate investors who took part in the private funding rounds in 2022 and 2023, the prospectus reveals that Shein will pay around US$1.33 billion to holders of its pre-D, D and D+ preference shares.


Shein successfully secured seven cornerstone investors, who together subscribed to about US$383 million worth of shares, accounting for around 22 per cent of the base offering size.
Most of these cornerstone investors are existing backers. Based on Monday’s grey market close, they are already sitting on a paper loss of HK$410 million.
The stock will start trading in Hong Kong on Tuesday, representing Shein’s third attempt to go public, after previous efforts in the United States and Britain stalled. The company, which relocated its headquarters to Singapore, eventually chose Hong Kong after facing setbacks in Western capital markets.
Hong Kong Exchanges and Clearing had launched weekly and monthly options for the stock, added it to a designated list for short selling and allowed derivative warrants to begin trading on the company’s first listing day.
While Shein maintained annual revenue growth above 40 per cent from 2021 through 2023, the prospectus shows a compound annual net income growth rate of 14.2 per cent.
In the first quarter of this year, Shein’s revenue growth nearly stalled, rising only 1.1 per cent year on year to US$9.05 billion, according to the prospectus.
Morgan Stanley, JPMorgan Chase and Goldman Sachs are joint sponsors of Shein’s initial public offering, while Haitong International Securities, UBS, HSBC, Merrill Lynch (Asia-Pacific), Banco Santander and East West Bank are the joint bookrunners, according to its prospectus.


Hong Kong stocks decline after Fed raises interest rates and signals more to come

US rate increase should only have short-term impact on Hong Kong stocks: CICC

Hong Kong rated Asia’s top financial hub for fourth straight year: report

Investors prepare for ‘super-central-bank week’ as US rate increase appears done deal

Hong Kong stock market

Shein shares recover after 10% drop on Hong Kong debut

Shein Global Holdings employees, including founder Sky Xu (centre, top row) at the listing ceremony in Hong Kong on Tuesday. Photo: Jonathan Wong

Shein Global Holdings’ chief financial officer Leigh Gui (right) and HKEX’s chairman of the listing committee Christopher Wong at the listing ceremony on Tuesday. Photo: Jonathan Wong

‘IPO queen’ Pamela Chung says time is ripe for listing connect scheme

Pamela Chung Kong-hung at her office in Causeway Bay on August 11. Photo: Jonathan Wong

Pamela Chung Kong-hung. Photo: Jonathan Wong

Hong Kong emerges as Asia’s top hub for start-up potential, ranks fifth worldwide: study

A general-purpose intelligent robot works in Lan Kwai Fong, Hong Kong, on August 31. Photo: Dickson Lee

Shein seeks to raise up to US$1.76 billion in Hong Kong initial public offering

The Shein logo on a smartphone. Photo: dpa

Clothes from fast-fashion brand Shein at its office in Sao Paulo, Brazil. Photo: Reuters

Business

Banking & Finance

Companies

News

The fast-fashion retailer sold 280 million shares at HK$48.56 each, according to an exchange filing Monday


The fast-fashion retailer sold 280 million shares at HK$48.56 each, according to an exchange filing Monday.


Shein shares recover after 10% drop on Hong Kong debut

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The fast-fashion retailer sold 280 million shares at HK$48.56 each, according to an exchange filing Monday

The fast-fashion retailer sold 280 million shares at HK$48.56 each, according to an exchange filing Monday