Sky Xu, the billionaire cofounder of fashion giant Shein Global Holdings, finally took the company public in Hong Kong on Tuesday after previous failed attempts to list in London and New York. But shares have plunged as much as 10% during their trading debut amid worries of geopolitical headwinds and the firm’s plateauing growth.

The stock later pared some of its losses to end 8.6% lower Tuesday morning. Once an investor darling with a peak valuation of almost $100 billion reached after its series D funding round in 2022, Shein now has a market capitalization of HK$187.5 billion ($24 billion). The company raised earlier this week HK$13.6 billion by selling 280 million shares at HK$48.56 apiece, the mid-point of an indicative price range, according to a stock exchange filing. The company intends to use the proceeds to boost brand awareness and upgrade its technology infrastructure, the IPO prospectus shows.

The........

© Forbes