Shein won Beijing’s approval — and will compensate investors for the fall in valuation
The listing is likely in September or October. The company will hand its 2022 investors money to buy shares, softening the drop from $100 billion.
Shein is likely to aim for its Hong Kong initial public offering in September or October, after winning approval from the Chinese securities regulator on Friday.
The company has indicated it could sell up to 8% of its shares, but the final level is likely to be lower. With a possible IPO valuation of $40 to $50 billion, the amount raised would be in the low single-digit billions.
The most striking part is the cushioning mechanism. Shein was valued at $100 billion in a 2022 fundraising; the company will now compensate those investors for the decline in valuation by giving them money to buy shares in the offering.