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Ultra-fast-fashion brand Shein has been valued at $26.2 billion after its first day of public trading, following a long quest to list on the stock market. The company was once estimated to be worth nearly $100 billion, but has faced heated competition, trade tensions, and questions over the ethics of its supply chain.
Shein's share price fell in the early hours of trading but recovered ground before closing down just 0.12%. The company's attempts to list in the UK and US were scuppered after supply chain concerns and criticism of its environmental impact. On Monday, Shein priced its shares at HK$48.56 each, raising 13.6 billion Hong Kong dollars from the listing.
Shein became hugely popular, especially among younger people, due to its ability to source the very latest fashions at ultra-low prices through a vast network of factories in China. However, it now faces higher costs, regulatory scrutiny, and more competition. The listing marks the largest new share sale in Hong Kong so far this year, which is being seen as a test of investor appetite for the fast-fashion industry.