Shein's Hong Kong IPO reveals a bruising valuation gap

Shein priced its Hong Kong IPO at HK$48.56 a share, raising about HK$13.6bn and valuing the company at roughly $26bn—well below its private peak—despite tepid demand and cornerstone commitments around 22%. The shares slid up to 10% on debut before recovering, underscoring investor caution about growth, margins and regulatory risks (EU Digital Services Act) plus anti-dilution provisions for early investors. With de minimis duty-free exemptions fading, the business may become more capital-intensive; the listing highlights a valuation gap between private hype and public pricing, though it does not doom Shein if margins recover.