Shein's Hong Kong Debut Opens Flat After Valuation Slumps to $26.5 Billion
Shein's shares opened flat on its Hong Kong debut, with the IPO valuing the firm at $26.5 billion, down from $100 billion in 2022.
Fast-fashion retailer Shein began trading on the Hong Kong stock exchange on Tuesday, with shares opening flat. The muted debut follows a long and turbulent path to the public markets, marked by regulatory obstacles and shifting trade policies.
The company, known globally for ultra-low-cost apparel, has faced significant headwinds in its key Western markets. Changes to tariff and duty rules in the United States and Europe have eroded the business model that once made it a darling of global investors.
At its peak in 2022, Shein was valued at an estimated $100 billion, making it one of the world's most valuable startups. However, the valuation at this week's initial public offering has fallen sharply to roughly $26.5 billion.
Shein's listing journey was also complicated by failed attempts to go public in New York and London. Those efforts were hampered by intense scrutiny of its labor and business practices in the West, as well as a block from Chinese regulators on an earlier listing attempt.