Online fast-fashion retailer Shein's stock opened 10% lower in Hong Kong's grey market trading. The company starts trading on September 1. Robotics company Mech-Mind Robotics Technologies rose over 1% in grey market trading.
Known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, Shein had first sought an IPO valuation of $30 billion to $40 billion when investor meetings ahead of the IPO kicked off.
Cornerstone investors led by existing shareholders Boyu, Tiger Global and General Atlantic have subscribed for about $383 million worth of Shein shares, the prospectus showed. Tencent 0700.HK, Greenwoods, Taikang Life and UBS Asset Management will also take stock.
Shein said it would use about 80% of the cash raised in the IPO to improve its technology and increase its brand and global presence.
It has agreed to pay up to about $3.5 billion in cash to certain investors who bought special shares in earlier private funding rounds, according to the prospectus.
The shares sold in the Hong Kong IPO will have one-tenth the voting rights of the shares held by the company's founders.
Co-founders Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren will control 90% of Shein's voting rights, the prospectus showed.
Shein's IPO is the largest new share sale in Hong Kong in 2026, surpassing autonomous driving firm Momenta Global's $751 million offering in July. It is the third-largest IPO in Asia, behind CXMT 688825.SS and China Resources New Energy 001248.SZ, which raised $9.8 billion and $3.6 billion respectively, in Chinese onshore IPOs.
Hong Kong IPOs have raised about $41 billion so far this year, a record for the period and more than double the $17 billion raised a year earlier, LSEG data showed.
Mech-Mind Robotics Technologies's net proceeds will be used mainly to fund R&D and expand the company's product portfolio and application scenarios.
The company also plans to expand its global presence and accelerate commercialization, increase production capacity, and improve operational efficiency, with the remainder allocated to working capital and general corporate purposes.
The IPO has nine cornerstone investors, including Baillie Gifford, Taikang Life, Invus, Jane Street and Ghisallo, which have committed to subscribe for a combined $186 million worth of shares.
China Securities (International) Corporate Finance and CITIC Securities (Hong Kong) are acting as joint sponsors, with China Securities (International) Corporate Finance and CLSA serving as sponsor-overall coordinators, overall coordinators and joint global coordinators.
Daiwa Capital Markets and Macquarie Capital are also among the overall coordinators, while Futu Securities and Tiger Brokers are joint bookrunners and capital market intermediaries.