Shein to pay up to $3.5 billion to select pre-IPO investors around Hong Kong listing - CNA

Advertisement Business Shein to pay up to $3.5 billion to select pre-IPO investors around Hong Kong listing FILE PHOTO: A customer looks at clothes in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo 24 Aug 2026 11:31AM (Updated: 24 Aug 2026 11:45AM) Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a new cards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST HONG KONG, Aug 24 : Online fast-fashion retailer Shein will pay up to $3.5 billion to selected existing investors — almost twice the fresh capital it is seeking in an IPO — to help compensate them for a sharp slide in its valuation, its prospectus showed on Monday. The investors entitled to the payments in cash and extra shares include entities linked to Boyu Capital, Tiger Global, General Atlantic, Thrive Capital, Mubadala, Brookfield and others, the filings showed. They hold Shein's late-stage funding shares — Series pre-D, Series D and Series D plus preferred — which carry protections triggered by an IPO below the prices paid in earlier funding rounds. The broader group of preferred shareholders also includes Sanabil Private Equity, Coatue, D1 Capital, DST Asia, Reliance Retail, Coppel Capital, and Claure Group. CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less The prospectus for its listing in Hong Kong does not disclose how much each investor will receive. The payments are nearly double the up to HK$13.86 billion ($1.77 billion) that Shein aims to raise by selling about 280 million shares in its IPO, based on the top end of its indicated price range. Shein's proposed IPO price of HK$47.60 to HK$49.50 per share would value the company at up to about $27 billion. That is below the private valuations attached to the eligible funding rounds of $60.5 billion for the Series pre-D round in 2022, $98.2 billion for the Series D round later that year and $64 billion for the Series D plus round in 2023. Shein said it could pay up to $2.2 billion in cash under the conversion adjustment protections, assuming the IPO is priced at the bottom of the range. It will also issue 19.6 million additional shares to eligible holders at no cost. Separately, Shein also agreed to make about $1.33 billion in payments to holders of Series pre-D, D and D plus preferred shares. That includes about $1.1 billion, payable in three instalments by March 31, June 30 and September 30. A further estimated $230.4 million, which accrues until the IPO closes, will be paid within 15 business days after IPO completion. Shein said the payments will be funded from its own financial resources. Holders of Shein's older Series A, Series B, Series C and Series C plus preferred shares are not covered, the prospectus showed. ($1 = 7.8385 Hong Kong dollars) Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday. Sign up for our newsletters Get our pick of top stories and thought-provoking articles in your inbox Subscribe here Get the CNA app Stay updated with notifications for breaking news and our best stories Download here Get WhatsApp alerts Join our channel for the top reads for the day on your preferred chat app Join here Advertisement Also worth reading Content is loading... Advertisement