Shein, the Singapore-based fast-fashion retailer founded in China, fell as much as 17% in gray-market trading to HK$40.04 (US$5.1) ahead of its Hong Kong debut on September 1, below its HK$48.56 (US$6.2) initial public offering price.

More than 63 million shares changed hands on KGI Securities’ platform.

The company raised US$1.7 billion in the offering, giving it a market value of about US$26 billion, far below the nearly US$100 billion it reached in 2022.

Investors are weighing slower growth, tariff headwinds, and intensifying competition.

The listing came after a stalled London initial public offering plan and an earlier plan for a New York listing.

Shein also revealed a quarterly loss ahead of the deal and warned that tariffs were hurting earnings.

Bloomberg Intelligence estimates value Shein at more than 15x forward earnings, compared with 7.4x for Temu parent PDD Holdings and 10.7x for the Hang Seng Index.

Bloomberg Intelligence also forecasts Shein’s sales will rise 3.4% next year to US$44.3 billion.

🔗 Source: Bloomberg

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