Fast fashion giant Shein launches up to $1.8 billion Hong Kong IPO

Online ‌fast-fashion retailer Shein ​launched book building for a Hong Kong initial public offering on Monday, aiming ‌to raise up to HK$13.86 billion ($1.77 billion), valuing it at up to $26.81 billion, according to an offering prospectus.

Shein is selling ‌280 million shares for a minimum of HK$47.60 per share ‌and a maximum of HK$49.50 per share, the filings showed. The company will price the IPO on August 31 and debut on September 1. The ⁠long-awaited ​float comes ⁠as slowing revenue growth and weaker core earnings weigh on Shein's business, while ⁠shrinking margins have also raised concerns that its breakneck expansion is running ​into headwinds from higher trade costs, tighter regulatory scrutiny and ⁠intensifying competition across global e-commerce.

Shein, known for selling $5 dresses and $10 jeans to shoppers ⁠in ​about 160 countries, swung to a $99 million quarterly loss after the U.S. removed an import duty exemption on small ⁠packages, and a $328 million fair-value charge on convertible redeemable preferred shares ⁠following an ⁠accounting change. ($1 = 7.8402 Hong Kong dollars) ($1 = 7.8400 Hong Kong dollars)