Shein IPO prices at $26 billion, cutting CEO’s wealth by $15 billion
What's new: The Hong Kong listing values the fast-fashion retailer at about a quarter of its 2022 peak as tariffs, scrutiny and slower growth weigh on demand.
Shein is set to list in Hong Kong on Tuesday at a valuation of just over $26 billion, a steep drop from the $100 billion level it reached in private markets in 2022. The lower pricing cuts founder and CEO Sky Xu’s paper wealth to about $8 billion from more than $23 billion, based on his roughly 30% stake. The company raised about $1.7 billion in the IPO, while some pre-IPO investors are protected against a sharp markdown. Shein’s push to present itself as a global company failed to overcome US political pressure and concerns over its China-based supply chain. The retailer now plans to use 40% of the offering proceeds for technology tied to its manufacturing network in Guangzhou.