Fast Fashion Giant Shein Loses Value in Hong Kong Stock Market Debut
The retail giant, which carried out its long-awaited IPO in Hong Kong, faced a drop in its shares on its first trading day.
Shein, one of the leading brands in the fast fashion industry, saw its shares drop by approximately 8 percent on its long-awaited first trading day on the Hong Kong stock exchange, following unsuccessful attempts in the US and UK.
First Trading Day on the Hong Kong Stock Exchange
With the IPO priced at 48.56 Hong Kong dollars per share on Monday, 13.6 billion Hong Kong dollars were raised, and the company's market value was set at 26.3 billion dollars.
However, in early trading on Tuesday morning, Shein shares fell to the level of 44.8 Hong Kong dollars, making a weak start to the stock market.
Past IPO Plans and Hurdles
The company had previously attempted to go public in the US and UK markets, but these efforts proved unsuccessful due to various regulatory hurdles and objections.
Concerns regarding labor practices and environmental impacts were among the primary factors that negatively affected the company's listing processes in Western markets.
Major Drop in Valuation and Challenges
The company, whose market value was once estimated to be around 100 billion dollars, is currently trading at a valuation of a quarter of that figure.
Intense competition and global trade tensions are among the other challenges faced by the company, which was founded in China in 2008 and is headquartered in Singapore.