Shein shares closed flat in the company’s Hong Kong debut on Tuesday after recovering from an early 10% drop, according to Dealbreaker. The stock ended at HK$48.50, just under its IPO price of HK$48.56, valuing Shein at about $26.3 billion, according to Dealbreaker.
Trading in the debut session
Shein shares recovered from an early 10% drop and finished the debut session flat, according to Dealbreaker. The shares ended at HK$48.50, which was just below the IPO price of HK$48.56, according to the same report.
The closing price left the company valued at about $26.3 billion, according to Dealbreaker.
Valuation reset versus prior peak
The Hong Kong debut valuation of about $26.3 billion was far below Shein’s 2022 peak of nearly $100 billion, according to Dealbreaker. Dealbreaker also reported that the fast fashion company had been valued at $100 billion four years ago.
Investor concerns cited
Dealbreaker said the debut reflected investor caution over slowing growth, rising trade costs, and regulatory scrutiny. Dealbreaker cited regulatory scrutiny that included an FTC investigation and an EU platform review.
Dealbreaker also reported that Shein has lost ground from the end of U.S. and EU duty-free exemptions that once fueled its low-cost shipping model.
Source linkage
Dealbreaker’s item also included a Reuters headline, “Shein makes lacklustre Hong Kong debut as investors fret about growth and regulatory risks,” as part of its coverage, according to Dealbreaker.
