Shein, the fast-fashion giant, has managed to raise 1.7 billion dollars in its initial public offering (IPO) in Hong Kong, valuing the company at approximately 26.3 billion dollars. This comes after IPO plans in New York and London were suspended due to strict regulations. The retailer offered 280 million shares at a price of 48.56 HKD each, below the announced maximum price. Shein's popularity surged during the Covid-19 pandemic, but it is now facing a slowdown in growth and regulatory pressures in its main markets, Europe and the United States.
The company is also facing criticism regarding its environmental impact and allegations of human rights violations. Although it reported a net profit of 2.06 billion dollars last year, Shein recently recorded a loss of 99 million dollars in one quarter. Analyst Lorraine Tan noted that the revenue growth outlook is limited by geopolitical challenges and increasing competition from other Chinese retailers. Shein's shares will begin trading on Tuesday, and the company intends to use the funds to improve its technological capabilities and expand its international presence.
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