Shein Global Holdings Ltd., the Chinese fast-fashion company, is set to go public in Hong Kong at a valuation just over $25 billion, a quarter of its $100 billion worth in 2022. This IPO will reduce CEO Sky Xu’s net worth by more than $15 billion, bringing it down to about $8 billion based on his 30% stake, according to the Bloomberg Billionaires Index, as reported by fortune.com.
The sharp decline in Xu’s wealth reflects challenges Shein has faced in recent years, including tariffs, political scrutiny, and intensifying competition. The timing of the IPO also contributed to the reduced valuation, as investor enthusiasm has shifted from e-commerce to artificial intelligence companies, which have recently dominated Hong Kong’s IPO market. Sam Wyatt, portfolio manager at U Ethical Investors, noted that Shein missed the optimal window for its public offering.
Shein’s IPO contrasts with the strong debut performances of some AI firms, which have generated significant investor interest and new billionaires. However, the broader Hong Kong IPO market has seen mixed results, with companies like Eastroc Beverage Group and Muyuan Foods trading below their listing prices despite raising over $1 billion each. This shift highlights changing investor preferences and market dynamics in the region.
Shein’s Hong Kong IPO is scheduled for Tuesday, marking a pivotal moment for the company and its leadership amid evolving market conditions and investor sentiment, according to fortune.com.