SHEIN

Otto Group Raises €325M via Schuldschein

The Otto Group successfully raised €325 million through a heavily subscribed Schuldschein (debt certificate) placement, significantly exceeding an initial target of €100 million. The issuance included tranches with three-, five- and seven-year maturities, with the five-year tranche being the largest. Institutional investors from domestic and international markets participated, and all tranches were placed at the lower end of the interest range. According to Otto, the proceeds will be used for general corporate purposes and to optimize the company's maturity profile, strengthening its long-term financing structure amid improved operating performance.

Apparel IPOs Are Showing Signs of Recovery

Fashion companies are gradually returning to public markets after a multi-year IPO slump that hit consumer goods, helped by lower tariffs, continued consumer spending, and efficiency gains from AI. Reformation went public on the NYSE on July 30, raising $210.9 million at an $886.1 million valuation. Tailored Brands filed a registration statement to go public, and Shein is reportedly targeting a Hong Kong IPO as early as late August. Industry observers warn that macro volatility, geopolitical tensions and large tech/AI IPOs could crowd the market, making outcomes uncertain for smaller consumer names despite renewed investor appetite for well-scaled DTC brands.

Shein plans cautious Hong Kong IPO at $30–40B

Shein is preparing an initial public offering in Hong Kong with a markedly lower target valuation of roughly $30–40 billion, according to Reuters. The company’s planned range is a significant reduction from its roughly $98 billion valuation in 2022. Shein reported a loss in Q1 2026 after being profitable the previous year, and slowing growth, rising costs, removal of certain U.S. tariff advantages and tighter European regulation have pressured its outlook. After failed IPO plans in the U.S. and Britain, Hong Kong became the chosen listing venue following regulatory clearances from Chinese and Hong Kong authorities. The move reflects investor preference shifts toward profitability over pure growth.