Fast-fashion titan, Shein, has finally completed its stock market debut in Hong Kong, going public at a valuation of £19.3bn after years of speculation. However, the path to this point was far from seamless, with the business initially trying to list in the US or UK stock markets, before being forced to pivot to Asian markets.
When a company goes public, they are able to sell small parts of their company (shares) to the general public, where they can only sell to certain investors before this. This allows a business to raise more money (capital) without taking on debt but comes with major trade-offs regarding transparency and public disclosure. Once public, controversies that companies could ignore whilst private, may become bigger issues as valuation slumps scare off investors.
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