HONG KONG – Shein has pushed back its market debut in Hong Kong until September following a slight delay in taking investor orders for the fast-fashion retailer’s IPO at a reduced valuation, the South China Morning Post (SCMP) reported on Aug 20.
Shein plans to introduce multiple cornerstone investors, although most positions will be taken up by existing shareholders, the report said, citing sources familiar with the matter.
Reuters reported on Aug 17 that Shein is aiming to launch its much-awaited Hong Kong IPO later this week at a valuation just a quarter of the nearly US$100 billion (S$127 billion) number seen in a share sale four years ago.
The firm’s valuation was likely to be around US$25 billion in the initial public offering (IPO), Reuters reported, a drop from the US$30 billion to US$40 billion range speculated at the beginning of August, just after it began investor meetings on the issue.
Founded in China in 2012, Shein is best known for selling US$5 dresses and US$10 jeans to shoppers in about 160 countries.
The SCMP report said the company now intends to start book-building from Aug 24. It had originally aimed to complete the entire IPO process by the end of August.
Investment banks involved in the deal are considering arranging their own funds to serve as cornerstone investors, the report added. REUTERS
