After failed attempts to list its shares in New York and London, Shein Global Holdings has officially made its stock market debut (0625.HK)—though it wasn’t exactly a success.
On Tuesday, September 1, the Chinese-founded fast-fashion company made its IPO on the Hong Kong Stock Exchange (HKSE) with a price of HK $48.56 ($6.19 USD). The stock fell more than 9% before recovering to a similar price of HK $48.50.
A downsized giant
Despite the rebound, Shein is still far from its heyday.
In 2022, the company had a reported $100 billion valuation. Shoppers had flocked to the fast-fashion online retailer during the pandemic, buying up clothing items often for single digit prices.
Since then, Shein’s value has dropped by one-fourth to an IPO valuation of $26.5 billion. The company reported a $99 million loss in its first quarter.
Competition, controversy, and tariffs
Shein’s fall from grace came with reports of forced labor and human rights violations.
Those exceptionally cheap clothing items were given a human face that some consumers couldn’t ignore—though many people still buy from the brand. Shein has been reticent to respond to such controversies. When it has, it has tended to make vague claims about of changes and regulations.
In February, the EU launched an investigation into Shein over worries that its platform is addictive for young people and sells illegal goods, including “child-like sex dolls.”
Shein also attributes its losses to new tariffs in the U.S. and Europe. Last August, the United States ended the de minimis exemption, which had allowed goods valued below $800 to enter the country tax free.
It’s early days for Shein as a publicly traded company. Only time will tell where the stock goes from here.
