Fast-fashion giant Shein raised $1.7 billion in its long-awaited Hong Kong initial public offering, valuing the online retailer at around $26.3 billion.
Shein’s much-anticipated arrival on the Hong Kong Stock Exchange has not gone according to plan, with the fast-fashion giant’s shares falling sharply shortly after trading began on Tuesday.
The company raised US$1.7 billion (about R27.4 billion) in its initial public offering, but its shares quickly dropped to HK$43.72 (R90.20) from the HK$48.56 (R100.20) listing price.
For a company that became one of the world’s biggest online fashion retailers by selling clothes at remarkably low prices, the weak debut is a significant setback.
It also highlights the challenge Shein now faces as regulators, governments and investors take a harder look at the business model that helped fuel its extraordinary rise.
