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Shein launched its long-delayed Hong Kong IPO on Monday, seeking up to $1.77 billion at a valuation of $27 billion. Then comes the twist. The fast-fashion giant will pay as much as $3.5 billion to some existing investors, nearly double the fresh capital it is raising, to compensate them for watching the valuation collapse.
Shein launched its much-awaited Hong Kong listing and promptly opened in the red. The company is selling 280 million shares at $6.10 to $6.35, valuing it more than 70% below the $98.2 billion it commanded in a 2022 private funding round.
That gap has investors feeling shortchanged. Holders of Shein's preferential shares from the late-stage rounds, including Boyu Capital, Tiger Global, General Atlantic, Thrive Capital, Abu Dhabi sovereign fund Mubadala, and Brookfield, carry conversion terms triggered by an IPO priced below what they paid.
The bill runs to as much as $2.2 billion in cash plus 19.6 million shares issued free of charge, with roughly $1.33 billion in additional payments to the same group. Shein says about 80% of the IPO proceeds will go toward technology and expanding the brand globally.
#shein
Shein launched its long-delayed Hong Kong IPO on Monday, seeking up to $1.77 billion at a valuation of $27 billion. Then comes the twist. The fast-fashion giant will pay as much as $3.5 billion to some existing investors, nearly double the fresh capital it is raising, to compensate them for watching the valuation collapse.
Shein launched its much-awaited Hong Kong listing and promptly opened in the red. The company is selling 280 million shares at $6.10 to $6.35, valuing it more than 70% below the $98.2 billion it commanded in a 2022 private funding round.
That gap has investors feeling shortchanged. Holders of Shein's preferential shares from the late-stage rounds, including Boyu Capital, Tiger Global, General Atlantic, Thrive Capital, Abu Dhabi sovereign fund Mubadala, and Brookfield, carry conversion terms triggered by an IPO priced below what they paid.
The bill runs to as much as $2.2 billion in cash plus 19.6 million shares issued free of charge, with roughly $1.33 billion in additional payments to the same group. Shein says about 80% of the IPO proceeds will go toward technology and expanding the brand globally.
#shein
12 hours ago
