Shein IPO order book reportedly covered for US$1.8 billion in Hong Kong

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Online fast-fashion retailer Shein secured full coverage for its US$1.8 billion initial public offering in Hong Kong, with investor demand supported by existing shareholders, China-focused funds, and multi-strategy funds. The company, which is valued at up to US$27 billion for this offering, plans to price its 280 million shares on August 31 before trading commences on September 1. This IPO follows previous unsuccessful attempts to list in New York and London amid investor and political criticism regarding the company's labor, environmental, and governance standards.

Consequences

The successful coverage of the book signals a shift toward a Hong Kong debut after Shein faced significant regulatory headwinds and investigations from the European Commission and the US Federal Trade Commission. The current valuation represents a decline of over 70 percent compared to the company's 2022 private-market valuation, reflecting the impact of global scrutiny on its growth prospects.

Sources

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