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Shein aims for nearly $27bn valuation in Hong Kong stock market debut

Fast-fashion retailer Shein plans to raise up to HK13.86bn (£1.3bn; $1.77bn) when its shares begin trading on the Hong Kong stock market on 1 September.

  • Shein will offer nearly 280 million shares for between HK$47.60 and HK$49.50.
  • The planned valuation of almost $27bn is significantly lower than its $100bn valuation in 2022.
  • The IPO follows previous attempts to list in the US and London that faced regulatory challenges.

Fast-fashion giant Shein is set to debut on the Hong Kong stock market on 1 September, aiming to raise up to HK13.86bn (£1.3bn; $1.77bn). The company announced on Monday that it will offer nearly 280 million shares, priced between HK$47.60 and HK$49.50.

At the top end of this range, the offering would value Shein at almost $27bn (£19.8bn). This figure represents a substantial decrease from the $100bn valuation achieved during a private fundraising round in 2022, a change attributed to weaker sales growth and higher operational costs.

This long-anticipated move follows unsuccessful attempts to list in both the US and London, which were met with regulatory scrutiny. Shein, headquartered in Singapore and founded in China, has secured backing from major Wall Street investment firms Goldman Sachs, Morgan Stanley, and JP Morgan for its initial public offering.

The company reported a quarterly loss of $99m in the first three months of the year, a shift from a net income of $395m a year prior. This loss coincided with a slowdown in sales after US President Donald Trump removed an import duty exemption on small packages, and against a backdrop of ongoing uncertainty regarding US-China tariffs.

Why this matters: The reduced valuation reflects challenges in the fast-fashion market, including slower sales growth and increased costs, as well as regulatory hurdles and geopolitical trade tensions.

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