Aug 20 - Shein has pushed back the timing of its Hong Kong initial public offering, moving its market debut into September after a brief delay in accepting investor orders for the offering at a reduced valuation, according to reporting by the South China Morning Post.
The fast-fashion e-commerce firm is said to be lining up several cornerstone investors to support the float, though sources familiar with the matter told the report that most of those positions would be filled by existing shareholders rather than new outside backers.
Shein did not immediately respond to a Reuters request for comment on the report. Earlier reporting from Reuters indicated the company had been preparing to launch the highly anticipated Hong Kong IPO later in the week, with a valuation that would amount to roughly one quarter of the nearly $100 billion valuation implied by a private share sale four years ago.
That reporting placed the likely IPO valuation at around $25 billion, a decline from the $30 billion to $40 billion range that had been discussed at the start of this month when investor meetings began. The company, founded in China in 2012, is primarily known for low-priced apparel - frequently cited examples include $5 dresses and $10 jeans - sold to customers in roughly 160 countries.
According to the South China Morning Post, Shein now plans to commence formal book-building on August 24. The firm had previously aimed to complete the entire IPO process by the end of August, a timeline that has now been extended by at least several days into the following month.
The report also said that the investment banks handling the transaction are weighing the option of directing some of their own funds to act as cornerstone investors for the deal. That approach would concentrate early allocations within the deal syndicate and among existing stakeholders.
Contextual note - The information above reflects the timeline, investor-allocations approach, and valuation expectations as reported. The company name, planned book-building date, valuation estimates, and investor arrangements are presented as described in the referenced reports.