Search
  • Ernie Diaz

Shein-ing Us On

Barely a week after we point out Shein as a shining example of squaring away your China IP, before it becomes China's IP. Now they're rumored to be prepping for an IPO worth a record-breaking $47b.

The big numbers don't preclude the usual pre-IPO antics. "No, no IPO planned, let's do another private round." But where there's smoke, there's fire, and where there are private secondary sharks, there is pre-IPO blood.

"Judging by the number of calls we're getting for blocks of Shein all of a sudden, it's hard to imagine that an IPO is not in the offing," says Edward Lehman. "The concern is the valuation, not to mention the potential of another stutter step such as Bytedance's. Traditional private shares investors would deem these issues significant, requiring careful consideration and research. And that's exactly why traditional investors are missing out on these blocks (of available shares). I would call it 'irrational exuberance', but then the markets in general don't seem to be driven by anything traditionally rational."

3 views0 comments

Recent Posts

See All

Too Big to Bail

We'd like to bear witness against the notion that Chinese giants are simply propped up by their government when they stumble. Sure, China's central bank and regulatory bodies shut Anbang down a few ye

Schools & Regulations

First they came for the tech companies, and we did not speak, for cybersecurity and monopolies are a thing. Next they came for the listed education companies, and we did not speak, for anyone in China

Free Money

It's just the same as with your therapist: the more you open up, the harder it is to stop. Opening up the economy led to 9%= GDP growth for decades, a golden era of prosperity. Anyone grateful? Nope.