HONG KONG: Online fast-fashion retailer Shein’s Hong Kong initial public offering (IPO) book to raise up to US$1.8bil has been fully covered by investor demand, two sources say, bringing it closer to its long-awaited market debut amid growing business and regulatory challenges.
Shein launched its share sale on Monday, valuing the company at up to US$27bil.
Investor orders for the offering have come from a number of existing shareholders, China-focused and multi-strategy funds, said the sources with knowledge of the matter.
They declined to be named as they were not authorised to speak to the media.
A Shein spokesperson did not immediately respond to a Reuters request for comment.
The Singapore-based, China-founded company is selling 280 million shares at 47.60 Hong Kong dollars to 49.50 Hong Kong dollars a share in the IPO, according to the company’s filings, which would raise US$1.8bil at the top end.
The final price of the shares is due to be unveiled on Monday and the stock is scheduled to begin trading on Hong Kong’s stock exchange on Sept 1.
Shein’s valuation in the IPO is nearly 70% below the nearly US$100bil private market valuation that it reached in 2022. — Reuters
