Shein lost US$5 billion in market value after Hong Kong IPO debut
Shein Global Holdings lost approximately US$5 billion in market capitalization since its listing, closing down 19% below the offering price as of recent trading data.
Shein Global Holdings Ltd. shed roughly US$5 billion in market value following its initial public offering in Hong Kong, marking one of the weakest start weeks for a major IPO to date. Despite registering a 3.2% gain on Monday, shares closed down 19% from the offering price of HK$48.56. This performance represents the second-worst outcome among companies raising at least US$1 billion during their first five sessions in Hong Kong, trailing only Baidu's 19.9% decline according to compiled data. Consequently, Shein's market capitalization fell to approximately US$21 billion from a pre-IPO valuation near US$26 billion. Investors remain skeptical about the retailer's ability to resume growth, citing regulatory hurdles and intensified competition as persistent challenges that capital issuance failed to resolve.
