Fast-fashion retailer Shein will pay up to HK$306 million ($39 million) in total fees to its underwriters for its Hong Kong initial public offering (IPO), according to a prospectus released Monday. The company is seeking to raise up to $1.77 billion through the listing, which places its overall valuation at approximately $27 billion.
The fee structure represents roughly 2.2% of the fresh capital the company aims to raise. This rate is lower than other recent major listings in Hong Kong, such as the autonomous driving firm Momenta Global, which paid approximately 3.4% in fees for its $752 million listing in July.
Shein has expanded its roster of underwriters as it faces regulatory headwinds, tax pressures, and increased competition. The core group of banks—Goldman Sachs, Morgan Stanley, and J.P. Morgan—remained with the company following its previous attempts to list in the United States and Britain.
Recent additions to the advisory team include Haitong International and UBS. The prospectus revealed that four additional underwriters—HSBC, Bank of America Securities, Banco Santander, and East West Bank—have also joined the offering. Shein noted that these banks will receive a discretionary incentive fee, though the specific rate for this was not disclosed.
The valuation of $27 billion and the fundraising target of up to $1.77 billion reflect the current market assessment of the fast-fashion industry. Retail analysts and stakeholders will notice these figures as a measure of the company's ability to maintain its market position despite what the company described as stiffer competition and regulatory hurdles. The listing process translates to a concrete shift in the company’s legal and financial transparency requirements as it moves from a private entity to a public one on the Hong Kong exchange.
The outcome of this IPO may influence future policy and listing strategies for other multinational e-commerce firms navigating international trade tensions. The inclusion of both Western and Chinese banks in the underwriting roster establishes a precedent for how large firms manage multi-jurisdictional regulatory environments. While the prospectus was filed on Monday, the specific dates for the commencement of trading and the final determination of the discretionary incentive fees have not yet been reported.