View of Shein's booth during an expo in Guangzhou, Guangdong province. HUANG TAIMING/FOR CHINA DAILY
Shein's Hong Kong IPO is testing how public investors value a global e-commerce model being reshaped by slower growth, rising fulfillment costs and tighter rules for low-value parcels, industry experts said.
At the top of the proposed HK$47.6 ($6.07) to HK$49.5 range, Shein would have a market capitalization of up to $27 billion, roughly 70 percent below its nearly $100 billion private valuation in 2022.
Pan Helin, a member of the expert committee for information and communication economy under the Ministry of Industry and Information Technology, attributed the valuation reset partly to the maturity of e-commerce, where growth has slowed and competition has intensified.
"Shein's rapid rise in 2022 coincided with overseas supply-chain disruptions and sharp price increases, while today's market conditions leave less room for the exceptional growth expectations reflected in its earlier private valuation," Pan said.
