Shein's Hong Kong IPO drops 10%, raises US$1.7 billion
Business
Shein, the fast-fashion brand everyone knows, saw its shares tumble 10% on their first day of trading in Hong Kong.
The stock started at HK$48.56 but quickly slid to HK$43.72, raising US$1.7 billion from the IPO.
The company's new valuation is US$26.3 billion, a big step down from its nearly US$100 billion private fundraising peak back in 2022.
Analysts expect Shein growth under 10%
Shein plans to use the IPO money for global expansion and tech upgrades, but things aren't looking easy.
Analysts say growth will slow to under 10% a year by 2025 as new EU tariffs, France's tax on ultra-fast fashion, and tough competition from Temu and AliExpress pile on more challenges.
Regulatory and sustainability issues are also making it harder for Shein to keep up its rapid pace.