Shein Shares Slide Below IPO Price in Hong Kong Debut
PDD sits 17% above its 52-week low of $71.94.
Summary
Shein's Hong Kong debut saw shares fall from HK$48.56 to HK$43.8, below the IPO price, despite the offering being oversubscribed. The IPO raised $1.7 billion at a $26.5 billion valuation, a sharp drop from its 2022 peak. Analysts note Shein trades at around 15x forward earnings, more than twice PDD's multiple, while facing higher tariffs, loss of US de minimis, and intense competition from Temu. This follows PDD's Q2 revenue miss and management's warning on EU customs duties. The weak debut underscores investor caution toward Shein's growth and margin pressures, contrasting with stronger demand for AI and robotics listings.
At the time of this announcement, PDD was trading at $84.24 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $122B. The 52-week trading range was $71.94 to $139.41. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.