WASHINGTON (dpa-AFX) - Shein's long-delayed public listing has exposed the challenges facing the fast-fashion giant, with the company's Hong Kong debut coming at a valuation far below its peak.
Shein raised $1.7 billion in its initial public offering, valuing the company at $26.5 billion, more than 70 percent below its $98.2 billion valuation in 2022. Its shares fell nearly 10 percent at the open on Tuesday, reflecting weak investor demand.
The company's financial performance has also weakened. Shein's net income fell 39 percent last year despite higher revenue, while it reported a $99 million loss in the first quarter. Revenue growth slowed to less than 8 percent last year from more than 40 percent annually previously.
Shein is facing growing competition from rivals such as Temu, while the removal of duty-free de minimis rules in the U.S. and Europe has increased pressure on its low-cost shipping model. The company also continues to face scrutiny over labour practices, environmental concerns and its links to China.
After unsuccessful attempts to list in New York and London, Shein's Hong Kong debut marks a major shift for a company that once targeted a valuation close to $100 billion.
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