Shares of fast-fashion giant Shein tumbled about 10% in early Hong Kong trading before paring losses to trade down 4% by lunchtime on Tuesday, last trading at HK$46.62. The Singapore-headquartered company sold about 280 million shares in its initial public offering, raising around 13.60 billion Hong Kong dollars ($1.74 billion) after the final offer price was set at HK$48.56 per share, below the maximum offer price of HK$49.5. Known globally for selling $5 tops and $10 dresses, the IPO valued Shein at around $26.5 billion, far below its 2022 peak of nearly $100 billion. From a retail perspective, Bryan Gildenberg, managing director of Retail Cities, pointed to the changing competitive landscape facing Shein, saying that TikTok Shop's "entertainment first, commerce second" approach could offer shoppers some of the same "excitement, enjoyment and treasure hunt" that Shein and Temu had pioneered, and that they were "getting caught up a little bit, particularly by TikTok."
PDD Holdings Inc.Shares fell 10% on debut after IPO priced below max, valuing company at $26.5B vs $100B peak.
