Fast-fashion retailer Shein is seeking to raise up to $1.8 billion through a Hong Kong initial public offering, valuing the company at about $27 billion – roughly 70% below its private-market peak four years ago.
The China-founded, Singapore-headquartered business has launched the sale of 280 million shares priced between HK$47.60 and HK$49.50 each. At the top of that range, the offering would raise HK$13.86 billion, or approximately $1.77 billion, ahead of an expected market debut on 1 September.
Shein, which sells low-cost fashion to customers in around 160 countries, had previously considered stock market listings in New York and London before turning to Hong Kong.
The proposed valuation represents a substantial shift from the company’s earlier private-market heights. Shein was valued at around $100 billion in 2022, before being valued at $64 billion in 2023 and April 2024.
Investor appetite is likely to be shaped by a more difficult operating backdrop, including tariffs, rising compliance costs, tougher regulation and increasing competition in global e-commerce. Morningstar’s Asia equity research director Lorraine Tan said the reduced valuation reflected a change in Shein’s prospects compared with two or three years ago, when a public listing was first discussed.
The company expects first-half revenue growth in 2026 to be broadly in line with the 1.1% growth it recorded in the first quarter. It also expects its operating margin to be slightly below the first-quarter level, citing new European import charges, pricing pressure and softer Middle East demand linked to the war in Iran.
Shein said the removal of a US import-duty exemption for low-value packages had a material impact on its business. The change contributed to a 14.3% decline in US revenues during the first quarter, while the business posted a quarterly loss of $99 million after accounting for the policy shift and a fair-value charge.
Cornerstone investors, including existing shareholders Boyu, Tiger Global and General Atlantic, have committed around $383 million to the share sale. Tencent, Greenwoods, Taikang Life and UBS Asset Management are also set to take shares.
About 80% of the IPO proceeds will be used to strengthen Shein’s technology, brand and international presence. However, the prospectus also highlighted its exposure to ongoing legal and regulatory matters in the US and Europe, for which it had set aside around $80 million by the end of March.
If completed, the transaction would become Hong Kong’s biggest new share sale of 2026, surpassing autonomous driving company Momenta Global’s $751 million offering in July.
