Shein slips 17% in grey market ahead of Hong Kong debut
Why it matters: The weak read-through comes after Shein raised $1.7 billion at a $26 billion valuation, far below its former $100 billion peak.
Shein shares fell as much as 17% in grey market trading on Monday, a day before the fast-fashion retailer’s Hong Kong debut, signaling a shaky reception for one of the year’s biggest listings. The stock dropped to HK$40.04 from its IPO price of HK$48.56 on KGI Securities’ platform, with more than 63 million shares changing hands. Shein raised $1.7 billion in the offering, valuing the Singapore-based company at about $26 billion. Investors are weighing slowing growth, tariff pressure and tougher competition from PDD’s Temu in the US and Europe. Bloomberg Intelligence estimated Shein’s valuation at more than 15 times forward earnings, above PDD and the Hang Seng Index.