Fast-fashion retailer Shein has delayed its Hong Kong IPO until September, according to the South China Morning Post. The postponement follows a slight delay in taking investor orders and a reduced valuation for the offering.
The postponement and reduced valuation of Shein's IPO indicate potential challenges in the current market for large offerings, impacting investor sentiment towards fast-fashion and global retail IPOs.
Shein has postponed its planned market debut in Hong Kong until September, according to a report by the South China Morning Post. The delay follows a slight setback in securing investor orders for the fast-fashion retailer's initial public offering.
The company is reportedly aiming for a valuation of around $25 billion, a significant decrease from previous estimates and a fraction of its nearly $100 billion valuation from four years ago. Shein plans to incorporate cornerstone investors, though most of the allocation is expected to go to existing shareholders.
Investment banks involved in the deal are reportedly considering using their own funds to act as cornerstone investors. Shein originally aimed to complete its IPO process by the end of August and intended to commence book-building on August 24.
Founded in China in 2012, Shein is known for its affordable clothing, selling items like $5 dresses and $10 jeans to customers in approximately 160 countries.