Shein Global Holdings Ltd. is set to begin trading in Hong Kong on Tuesday following an initial public offering that raised HK$13.6 billion ($1.74 billion). The offering was priced below the top end of its marketed range, testing investor appetite for stocks outside the artificial intelligence supply chain.
The company completed its IPO at a valuation that is just over a quarter of the $100 billion it was worth in 2022, remaining well below what it commanded during private fund-raising rounds. This Hong Kong listing allowed the company to avoid paying out billions to early investors, although some investors may still consider the current valuation rich given the company's prospects.
These developments mark a turn in fortunes for reclusive boss Sky Xu, who once held a net worth of more than $23 billion when the fast-fashion business was worth more than the parent companies of Zara and H&M. Over the past four years, Xu has battled growing competition, political scrutiny, and tariffs. While the company spent years recasting itself as a global entity, its greatest strength remains unmistakably Chinese.