Shein shares dropped by more than 10% on the grey market ahead of the fast-fashion giant’s anticipated debut on the Hong Kong Stock Exchange, according to reports from Il Sole 24 Ore. The unofficial trading activity points to a cautious investor appetite as the company targets a valuation far below its 2022 private market peak.
Grey Market Performance and IPO Pricing
On the Asian broker Futu, Shein shares retreated 12% to trade at 42.7 Hong Kong dollars compared to an indicated placement price of 48.56 Hong Kong dollars, according to Il Sole 24 Ore. The fast-fashion retailer planned to offer 280 million shares within a price range of 47.60 to 49.50 Hong Kong dollars. L’impresa ha cercato di raccogliere fino a 13.86 billion (circa 1,5 miliardi di euro) per mezzo di questa offerta, puntando a una capitalizzazione di mercato di 210,3 miliardi di dollari di Hong Kong (l’equivalente di 23 miliardi di euro).
The pricing numbers underscore a dramatic shift from the private market valuation Shein commanded in 2022, when it reached nearly 100 miliardi di dollari sul mercato privato. Per la sua offerta pubblica iniziale prevista per domani, il noto marchio di abbigliamento low-cost mirerà a una valutazione di circa 27 miliardi di dollari, segnando un netto distacco dai quasi 100 miliardi di dollari che vantava nel 2022 sul mercato privato. The grey market—an unofficial venue where shares trade prior to formal stock exchange listing—served as a preliminary gauge of institutional and retail sentiment, revealing a gap between company expectations and initial buyer demand.
Market Pressures and Analyst Outlook
The Singapore-headquartered, China-founded company faces intense macroeconomic and competitive headwinds. According to Wall Street Journal columnist Jinjoo Lee, cited by Il Sole 24 Ore, Shein made a bold choice by proceeding with its stock market flotation despite slowing growth. The company has absorbed pressure from U.S. and European customs duties alongside heightened competition from rivals such as Temu, TikTok Shop, and Singapore-based Shopee.
While Lee noted that the shares did not represent a bargain, she observed that they were not excessively priced either, stating that the company must present a more compelling perspective to convince new investors. The formal listing outcome depends on whether the early weakness observed in pre-listing exchanges translates into the official trading session.