Home / Business and Economy / Shein Eyes $1.77B IPO With Lower Underwriter Fees
Shein Eyes $1.77B IPO With Lower Underwriter Fees
24 Aug
Summary
- Shein's IPO aims to raise up to $1.77 billion.
- The company is valued at approximately $27 billion.
- Underwriter fees are set at approximately 2.2%.
Fast-fashion retailer Shein is moving forward with its Hong Kong initial public offering, with prospectus filings indicating the company aims to raise up to $1.77 billion. This significant deal is set to value Shein at approximately $27 billion.
As part of the IPO preparations, Shein has committed to paying its expanded roster of underwriters a total fee of up to HK$306 million ($39 million). This fee amounts to roughly 2.2% of the new capital sought, a rate that appears lower than those seen in comparable recent large listings in Hong Kong.
The company has assembled a substantial team of banks to manage the offering. This includes its long-standing advisors Goldman Sachs, Morgan Stanley, and J.P. Morgan, joined by Haitong International and UBS, and more recently HSBC, Bank of America Securities, Banco Santander, and East West Bank.
Shein is also offering a discretionary incentive fee to banks, the rate of which has not been disclosed. The company faces mounting pressure to manage its valuation amid evolving tax and regulatory landscapes, alongside increased competition.
