Shein delays Hong Kong listing to September as valuation settles
The fast-fashion giant has pushed back its market debut due to a hold-up in investor orders, targeting a valuation of approximately $25 billion.
Fast-fashion retailer Shein has postponed its initial public offering in Hong Kong to September, citing a slight delay in securing investor orders at a reduced valuation. The company had originally aimed to complete the entire IPO process by the end of August. According to the South China Morning Post, which first reported the news on Thursday, the delay allows the firm to finalise its pricing strategy before launching.
Shein plans to commence book-building on 24 August. The move comes after Reuters reported on Monday that the company was aiming to launch its much-awaited Hong Kong IPO later that week. The listing is expected to be a significant event for the market, given the company’s global reach and its position as a major player in the low-cost apparel sector.
The targeted valuation for the IPO is approximately $25 billion. This figure represents a substantial reduction from the $30 billion to $40 billion range speculated at the beginning of the month, just after the company began investor meetings. It is also a fraction of the nearly $100 billion valuation achieved in a share sale four years ago.
Regarding the structure of the deal, Shein intends to introduce multiple cornerstone investors. However, sources familiar with the matter indicate that most positions will be taken up by existing shareholders. To support the deal, investment banks involved are considering arranging their own funds to serve as cornerstone investors, a move that could provide additional stability to the offering.
Founded in China in 2012, Shein is best known for selling low-cost apparel, such as $5 dresses and $10 jeans, to shoppers in approximately 160 countries. The company’s global footprint has made it a key figure in the fast-fashion industry, and its entry into the public markets is closely watched by investors and analysts alike.
Shein did not immediately respond to a Reuters request for comment regarding the delay. As the company moves forward with book-building in late August, the market will be watching closely to see if the reduced valuation attracts sufficient interest to ensure a successful debut in September.
