Shein Valuation Drops 70% as Hong Kong IPO Targets $1.77 Billion
Online fast-fashion retailer Shein launched its long-awaited Hong Kong IPO on Monday, seeking to raise up to HK$13.86 billion ($1.77 billion) and valuing the company at about $27 billion at the top of its price range. The valuation is roughly 70% below its private-market peak of nearly $100 billion in 2022, highlighting growing investor concerns over slowing growth, rising costs, regulatory scrutiny and changing global trade conditions. Shein is offering 280 million shares at HK$47.60 to HK$49.50 each, with the final price due on August 31 and trading expected to begin on September 1.
The China-founded, Singapore-headquartered company had previously explored listings in New York and London but abandoned those plans. Its latest prospectus points to mounting pressure on the business, including a 14.3% decline in U.S. revenue during the first quarter following the removal of the U.S. de minimis import exemption for low-value packages. Shein also expects first-half 2026 revenue growth to remain broadly in line with its 1.1% first-quarter growth, while its operating margin is expected to weaken. Higher duties, European import charges, pricing pressure and weaker Middle East demand have added to the challenges, while the company faces investigations and legal cases in the U.S. and Europe.
Despite the lower valuation, Shein’s IPO is the largest new share sale in Hong Kong this year and comes amid a strong rebound in the city’s listings market. The company plans to use around 80% of the proceeds to strengthen technology and expand its brand and global presence. However, founders Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren will retain 90% of voting rights, while public investors will receive shares with one-tenth the voting power of founder-held shares. The IPO therefore represents both a major capital raise and a crucial test of whether Shein can regain investor confidence amid intensifying competition and a more challenging global retail environment.
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