Aug 20 (Reuters) – Shein has pushed back its market debut in Hong Kong until September following a slight delay in taking investor orders for the fast-fashion retailer’s IPO at a reduced valuation, the South China Morning Post reported on Thursday.
Shein plans to introduce multiple cornerstone investors, although most positions will be taken up by existing shareholders, the report said, citing sources familiar with the matter.
Shein did not immediately respond to a Reuters request for comment.
Reuters reported on Monday that Shein is aiming to launch its much-awaited Hong Kong IPO later this week at a valuation just a quarter of the nearly $100 billion number seen in a share sale four years ago. The firm’s valuation was likely to be around $25 billion in the IPO, Reuters reported, a drop from the $30 billion to $40 billion range speculated at the beginning of this month, just after it began investor meetings on the issue.
Founded in China in 2012, Shein is best known for selling $5 dresses and $10 jeans to shoppers in about 160 countries.
The South China Morning Post report said that the company now intends to start book-building from August 24. It had originally aimed to complete the entire IPO process by the end of August.
Investment banks involved in the deal are considering arranging their own funds to serve as cornerstone investors, the report added.
(Reporting by Nikita Maria Jino in Bengaluru; Editing by Mrigank Dhaniwala)