Shein's shares fell 10% in their debut on the Hong Kong Stock Exchange, setting an initial price of HK$48.56. The company's valuation is below US$25 billion.
Shein's shares have experienced a notable drop in their debut on the Hong Kong Stock Exchange, according to expansion.com. The company set the price of its shares at HK$48.56 (equivalent to US$6.19), raising a total of HK$13.6 billion (approximately US$1.7 billion) and valuing the company at over US$26 billion.
However, in the first few minutes of trading, the shares fell by as much as 10%, reaching HK$43.72 (around US$5.58). Although they managed to partially recover, the closing was marked by a 4% drop, at HK$46.62.
This lacklustre debut contrasts with other recent initial public offerings in Asia, where other companies have seen significant increases in their shares. Additionally, Shein faces challenges such as trade investigations in the European Union and the United States, which has created uncertainty among investors.
The company has seen its net profit decrease to US$2 billion in the last year, having reached a peak of US$3.4 billion in 2024. It also reported a net loss of US$99 million in the first quarter, while warning about trade tensions that could affect its business.
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