Chinese luxury fashion firm Lanvin (LANV:NYSE) had a bad start to life on the US stock market, listing at $10 a share with a $1.3 billion valuation. The shares swiftly fell 28.5% to $7.15 amid concerns over cut-throat competition and the Chinese economy’s bumpy reopening as it emerges from a zero-Covid strategy.

Owned by China’s Fosun International, Shanghai-headquartered Lanvin is the footwear, leather goods and accessories seller behind the namesake French couture house and brands such as hosiery specialist Wolford and Italian luxury shoemaker Sergio Rossi.

Lanvin raised $150 million through the listing, well below the $544 million original target. Some 97% of shares in the cash shell into which it reversed – Primavera Capital – were redeemed, with investors asking for their money back rather than staying on board for the merger.

Sales grew by 73% to €202 million in the first six months of 2022 and Lanvin forecasts a move into profitability by 2024. The company will use the flotation proceeds to accelerate organic growth and fund strategic acquisitions. It wants to chase opportunities in North America and Asia.

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