Shein Drops 8% in Hong Kong Debut as Tariffs and Scrutiny Cut $24 Billion Valuation
Updated
Updated · NBC News · Sep 1
Shein Drops 8% in Hong Kong Debut as Tariffs and Scrutiny Cut $24 Billion Valuation
3 articles · Updated · NBC News · Sep 1
Summary
HK$44.6 was Shein’s morning trading level, down 8% from its Hong Kong IPO price and valuing the fast-fashion retailer at about $24 billion—far below its nearly $100 billion 2022 peak.
Investor caution centered on weakening economics: the U.S. scrapped the de minimis duty break for sub-$800 shipments, the EU added fees on low-value parcels, and Shein’s net income fell 39% last year before a first-quarter loss.
Subscription demand was modest for a marquee Hong Kong listing, with the retail tranche covered 5.63 times and the international portion 2.59 times, while only about 5% of enlarged share capital was freely tradable after cornerstone allocations.
The listing also serves to reset Shein’s capital structure after failed New York and London plans, with the company agreeing to about $3.5 billion in cash payments and share adjustments for some early preferred shareholders.
Shein is trying to offset slower U.S. and European growth by expanding its marketplace, supply-chain services and acquired brands, but analysts say developing markets may not fully compensate if delivery and tariff costs stay high.