Shein shares drop in grey market trading ahead of Hong Kong listing

AI-summarized · Neutrality-checked

Fast-fashion retailer Shein saw its shares fall 13.1 percent to HK$42.2 in grey market trading ahead of its Hong Kong listing, following a decline of up to 28 percent. The company priced 280 million shares at HK$48.56 each to raise HK$13.6 billion, resulting in a valuation of approximately US$26 billion. This valuation represented a significant markdown from the company's 2022 peak of nearly US$100 billion and its 2023 valuation of around US$64 billion.

Consequences

To address the valuation drop, Shein committed to paying approximately US$1.33 billion to holders of pre-D, D, and D+ preference shares who participated in earlier funding rounds. The poor performance in grey market trading suggests diminished market confidence in the company's valuation as it enters the public exchange.

Sources

Know where. Know why.