Shares in Shein fell 9% in their trading debut in Hong Kong on Tuesday, following a lackluster IPO that saw the fast fashion giant’s valuation fall by nearly a quarter from its all-time high.
The Singapore-based company sold about 280 million shares in its initial public offering, raising about HK$13.6 billion ($1.74 billion) after the final offering price was set at HK$48.56 per share, below the maximum offering price of HK$49.5.
The IPO values Shayne at approximately $26.5 billion, but the private market valuation in 2022 is expected to be $100 billion.
From a retail perspective, Brian Gildenberg, managing director of Retail Cities, pointed to the changing competitive environment facing Shein. “If I were Shayne, that would probably be my biggest concern,” Gildenberg told CNBC’s “The China Connection.”
He pointed to TikTok Shop’s “entertainment first, commerce second” approach, and said that while Shein and Tem enjoyed a first-mover advantage with “gamified discount hunting,” TikTok could offer shoppers a similar “excitement, fun, and treasure hunt.”
Mr. Gildenberg said that Mr. Shein and Mr. Tem are “a little bit wrapped up in TikTok in particular.”
CraneShares Chief Information Officer Brendan Ahern told CNBC’s “Squawk Box Asia” on Tuesday that investors may be cautious about Shane in the short term, with some likely to “stand on the sidelines” until there is more clarity on the company’s second-quarter results and balance sheet.
Ahearn said much of Shein’s growth has been driven by sales to consumers in the United States and Europe, but tariff changes in both markets have slowed revenue and squeezed margins, making that more difficult.
Mr. Shein’s Hong Kong debut comes after plans for listings in New York and London fell through. The Chinese-founded company, which moved its headquarters to Singapore in 2022, first secretly filed for a U.S. IPO in 2023 and then set its sights on London, where the Chinese government withheld approval, effectively blocking the listing, citing risk disclosures related to its Chinese supply chain.
According to the prospectus, Shein plans to use 40% of its IPO proceeds to strengthen its technology capabilities, an additional 40% to increase brand awareness and strengthen its global presence, and the remainder to support corporate responsibility initiatives and general corporate purposes.
According to Shine’s prospectus, net revenue in 2025 was $41.8 billion, compared with $38.7 billion in the same period last year.
In the first quarter of this year, Shein reported revenue of $9.05 billion, swinging from a profit in the year-ago period to a net loss of $99 million. According to the company’s prospectus, the main cause of the loss was a loss in the fair value of convertible redeemable preferred stock.
