Fast-fashion giant Shein is heading into its long-awaited Hong Kong listing with a valuation of about US$27 billion, roughly 70% below its near-US$100 billion private-market peak in 2022, as slowing growth, rising costs and regulatory pressures reshape investor expectations.
According to Reuters, the online retailer is offering 280 million shares at HK$47.60 to HK$49.50 each, seeking to raise as much as HK$13.86 billion (US$1.77 billion). At the top of the range, Shein would be valued at close to US$27 billion, sharply below the US$98.2 billion valuation it commanded four years ago.
Shein, which was subsequently valued at US$64 billion in 2023 and April 2024, had initially targeted a valuation of between US$30 billion and US$40 billion as it began investor meetings ahead of the IPO.
The company is expected to announce its final offer price on Aug 31, with shares scheduled to begin trading in Hong Kong on Sept 1.
The reduced valuation reflects mounting concerns over Shein’s growth outlook. The company expects first-half 2026 revenue growth to broadly match the 1.1% recorded in the first quarter, while operating margins are projected to weaken slightly amid new European import charges, pricing pressure and softer Middle East demand.
Shein also swung to a US$99 million quarterly loss following the removal of a US import duty exemption for small packages and a US$328 million accounting charge linked to convertible preferred shares.
Despite the headwinds, the deal has attracted cornerstone investors including existing shareholders Boyu, Tiger Global and General Atlantic, alongside Tencent, Greenwoods, Taikang Life and UBS Asset Management. Together, cornerstone investors have subscribed for around US$383 million of shares.
Shein plans to deploy about 80% of the IPO proceeds towards technology upgrades and expanding its brand and global footprint.
Its founders — Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren — will retain around 90% of the company’s voting rights, with the shares offered to Hong Kong investors carrying only one-tenth of the voting power of founder-held shares.
Despite its diminished valuation, Shein’s float will be Hong Kong’s largest IPO of 2026, overtaking Momenta Global’s US$751 million July listing and adding momentum to a market that has already raised around US$41 billion this year, more than double the amount recorded a year earlier.
