Goldman Sachs purchased approximately $220 million worth of shares in Shein following the online fast-fashion retailer’s turbulent initial public offering last month. The Wall Street bank acquired 42 million shares, representing about 13 percent of Shein’s initial share float, as part of its underwriting role, which includes the ability to buy shares on the open market to support the stock price.

According to a filing with the Hong Kong Stock Exchange, Goldman bought the shares—commonly referred to as the “greenshoe” option—at prices ranging from HK$35.90 to the IPO price of HK$48.56. The average purchase price was HK$42.23 per share, which would translate into an estimated trading gain of roughly $34 million based on current market prices.

Shein’s long-anticipated IPO, which valued the company at $26 billion, was widely regarded as unsuccessful after its shares dropped as much as 10 percent on the first day of trading. Since then, the stock has declined by 38 percent, bringing the company’s market capitalization down to about $16.3 billion.

Underwriting banks typically sell more shares than allocated by the issuing company, creating a short position they later cover by exercising an overallotment option to issue additional shares or buying shares in the market if the price falls. In this case, Goldman’s purchases in the open market have helped to stabilize Shein’s share price by increasing demand during the post-IPO trading period.

The International Capital Markets Association sets guidelines stating that any profits from such stabilization activities are shared among the underwriting banks. Goldman Sachs chose not to comment on the transaction. In prior instances, like the 2021 London listing of Deliveroo, underwriters had agreed to relinquish any gains from stabilization trading back to the issuing company.

Shein reported holding $15 billion in cash and cash equivalents as of June 30, slightly below its current market capitalization. The company’s IPO valuation represents a significant decrease from its peak value of roughly $100 billion, which was achieved during a private fundraising round in 2022. The earlier exuberance was fueled by pandemic-driven lockdowns and social media trends, including “Shein hauls” popular with younger consumers attracted to the brand’s affordable fashion offerings.