Fast-fashion giant Shein had a discreet debut on the Hong Kong Stock Exchange on Tuesday, raising $1.7 billion (R$ 8.8 billion) in its initial public offering (IPO), which concluded years of efforts to go public. At the market open, its share price plummeted by up to 10%. It then recovered and closed the day with a drop of just 0.1%, at HK$ 48.50 (US$ 6.18 or R$ 32.01) per share.
The highly anticipated stock market debut valued the company at approximately US$ 26.3 billion (R$ 136 billion), with an initial share price of HK$ 48.56 (US$ 6.19, R$ 32.07). This value is significantly lower than the nearly US$ 100 billion (R$ 518 billion) reached during private funding rounds in 2022.
The initial drop in shares reflects investors' caution regarding the company, which has faced regulatory challenges in various markets and criticism related to labor and environmental practices. However, the quick recovery in price demonstrates a certain market optimism about the company's future.
With this IPO, Shein aims to reposition itself as global fashion industry infrastructure and expand its international presence, competing with other major retailers in the sector. The company also promises to continue its low-price strategy, which has increased pressure on Brazilian and other countries' brands.
