Shein set the price for its Hong Kong initial public offering at the midpoint of the marketed range on Monday, securing HK$13.60 billion, equivalent to $1.74 billion, from the share sale. The online fast-fashion retailer allocated 280 million shares at HK$48.56 per share, a level below the previously announced maximum offer price of HK$49.50.
According to a stock exchange filing, demand differed across the offering tranches. The Hong Kong public offering was subscribed 5.63 times, while the international offering was subscribed 2.59 times. The filing reiterates the company’s stated intentions for the majority of the proceeds, which it said would be used to improve its technology and to increase brand awareness and its global presence.
The company, which is based in Singapore and was founded in China, is known for selling very low-priced apparel to a global customer base – items often priced at around $5 for dresses and $10 for jeans – and shipping to shoppers in about 160 countries. Having abandoned earlier plans to list in New York and London, the company is proceeding with its Hong Kong debut.
Shares of Shein Global Holdings Ltd are slated to begin trading on the Hong Kong stock exchange on Tuesday. The filing and the pricing announcement included the exchange rate used in the offering materials: $1 equals 7.8379 Hong Kong dollars.
The IPO pricing at the midpoint, the variation in subscription levels between the Hong Kong public and international tranches, and the company’s stated allocation of funds to technology and brand expansion are the principal details disclosed in the exchange filing accompanying the listing. No additional uses of proceeds or further financial projections were disclosed in the materials cited in the filing.
Market participants will watch the debut on Tuesday to observe how the offering price is received once secondary market trading begins and how investor interest in different tranches translates into post-listing performance.