Fast-fashion giant Shein shrinks value to up to $27 billion in Hong Kong IPO
Shein will pay up to HK$306 million in underwriting fees as it expands its banking syndicate and seeks to offset a sharp valuation drop for investors.
- On Monday, Shein announced it would pay up to $3.5 billion to selected existing investors to compensate them for a sharp slide in valuation ahead of its Hong Kong IPO.
- The payments address discrepancies between the IPO's projected $27 billion valuation and prior funding rounds, including a $98.2 billion valuation in 2022, which triggered protections for preferred shareholders.
- Shein's prospectus on Monday detailed an expanded underwriter team costing $39 million in total fees, while the company aims to raise up to $1.77 billion through the Hong Kong offering.
- Entities linked to Tiger Global, General Atlantic, and Mubadala are entitled to cash and share payments, which Shein said will be funded from its own financial resources rather than IPO proceeds.
- Shein's underwriting fee rate of roughly 2.2% appears lower than recent Hong Kong listings; Momenta Global paid around 3.4% in fees during its July offering.
71 Articles
71 Articles
Chinese discount clothing retailer Shein plans to list on the Hong Kong stock exchange in September, with a market value of around $25 billion to $28 billion. A quarter of what investors valued the company at in 2022. One reason for the decline is suspicions that the company uses forced labor from Uyghurs in Xinjiang province to produce its clothes.
The fashion retailer wants to redeem up to 27 billion dollars in Hong Kong. But the business model is under pressure. For China's hyped tech companies, this is a warning signal.
Shein prepares one of Hong Kong's most expected listings, but the assessment shows how much investors' perceptions of fast-fashion giant have changed. The company is pursuing an assessment of approximately $27 billion, compared to over $98 billion in 2022, reports CNBC.
Rising tariffs and import fees weigh on Shein Hong Kong flotation
Shein is seeking to raise up to $1.77 billion in Hong Kong at a valuation of just $27bn, barely a quarter of its 2022 price tag, as tariffs in the US and Europe put its low-cost business model under growing pressure. The fast-fashion group began taking orders on Monday for 280 million shares priced between HK$47.60 […]
It has not been easy to get here for Shein, but it has succeeded. The fast fashion manufacturer low cost will debut on the Hong Kong Stock Exchange on September 1 at a price of between 47.6 and 49.5 Hong Kong dollars, with which it expects to raise between 13,328 and 13,860 million Hong Kong dollars (1,455 and 1,513 million euros at the current change). In the operation brochure, the company has broken down its expansion plans, specifying what t…
Coverage Details
Bias Distribution
- 43% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
