Online fashion retailer Shein is reportedly preparing to price its initial public offering (IPO) at HK$48.56 a share, according to Reuters. This price is near the midpoint of its HK$47.60 to HK$49.50 range.
The IPO is expected to value the company at approximately $26.5bn and raise $1.7bn. This valuation is significantly lower than its nearly $100bn peak in 2022 and below the $66bn valuation from a 2023 fundraising round.
Shein, headquartered in Singapore and founded in China, launched its Hong Kong IPO on Monday. The final IPO price is due to be announced next Monday, with trading anticipated to commence the following day.
The company has stated it will use 80% of the proceeds to enhance its technology and expand its brand and global reach. Shein has also agreed to pay up to $3.5bn in cash to certain investors who purchased special shares in earlier private funding rounds.