Shein Raises $1.7 Billion in Hong Kong IPO

Shein Global Holdings Ltd. completed its initial public offering in Hong Kong, raising $1.7 billion. The company reached a market valuation of $26 billion, a sharp decline from the $100 billion valuation it held in 2022.

Investors expressed concern regarding the pricing, noting that the valuation is more than 15 times forward earnings. This ratio is roughly double that of competitor PDD Holdings Inc. The company's growth has slowed recently due to intensifying competition from Temu in Europe and the United States, alongside tariff headwinds.

Founded in China and based in Singapore, the retailer is projected to see full-year sales grow 3.4% to $44.3 billion next year, with an expected net income of $1.7 billion. The stock is scheduled to debut on Tuesday.