HONG KONG, Aug 27 - Online fast-fashion retailer Shein plans to set the price for its Hong Kong initial public offering at HK$48.56 a share, which lies close to the midpoint of the companys marketed range of HK$47.60 to HK$49.50. At that price the offering is expected to raise about HK$13.6 billion, equivalent to approximately $1.73 billion using the exchange rate provided in the filing materials.
The resulting market valuation would be around $26.5 billion. That figure is materially lower than Sheins peak private-market valuation of nearly $100 billion in 2022 and also below the $66 billion valuation the company achieved in a 2023 fundraising round. The company, which is headquartered in Singapore and was founded in China, launched its Hong Kong IPO earlier in the week.
According to sources close to the transaction, the deal pricing sits near the middle of the indicated range and will generate roughly HK$13.6 billion in proceeds. Those sources spoke on the condition of anonymity because the details were not yet publicly released. The company did not provide a comment by the time of reporting.
Details of the offering and context
Shein operates as a global online fast-fashion retailer selling low-cost apparel items, described in offering materials as examples such as $5 dresses and $10 jeans. The business distributes to around 160 countries. The Hong Kong listing represents the latest attempt by the company to list publicly after efforts over the past four years to list in New York and London.
The company has faced regulatory hurdles and commercial pressure in its major markets in the United States and Europe, factors noted in public commentary around the offering. The conversion of private valuations to a public-market price has resulted in a substantially lower equity market value than previous private rounds.
Exchange rate used in published materials
The materials accompanying the deal use an exchange rate of $1 = 7.8401 Hong Kong dollars for calculations cited in the offering summaries.
Additional notes
Information on the planned price, range and estimated proceeds were provided by individuals with direct knowledge of the matter. The precise allocation of shares, final institutional demand, and any greenshoe or stabilization measures were not disclosed in the information available to reporters at the time of publication.