Shein Shrinks Valuation Target To $27 Bn In Hong Kong IPO

Shein is seeking a valuation of as much as $26.8 billion through its long-awaited Hong Kong initial public offering (IPO), marking a major step towards a stock market debut after earlier listing efforts faced regulatory hurdles.

The fast-fashion retailer plans to raise up to HK$13.9 billion ($1.8 billion) by offering 280 million shares at HK$47.6-HK$49.5 apiece, as per a report by Bloomberg (BBG).

Shein is scheduled to begin trading on the Hong Kong Stock Exchange on September 1.

At the upper end of the price range, the IPO would value Shein at about $26.8 billion, placing it among the world's largest fashion and apparel companies, although below H&M's roughly $31 billion valuation.

Valuation Well Below 2022 Peak

The proposed valuation is substantially lower than the nearly $100 billion valuation Shein achieved in 2022, when pandemic-driven online shopping fuelled rapid growth.

Regulatory scrutiny had previously disrupted the company's attempts to list in the US and London. The retailer has also faced pressure from higher tariffs and weaker consumer spending.

Shein, which moved its headquarters to Singapore in 2021, continues to face geopolitical and regulatory challenges. The company voluntarily sought a US national-security review of its $80 million acquisition of Everlane, citing concerns related to personal data.

Shein's IPO prospectus showed the company posted a $99 million loss in the first quarter of 2026, compared with a $395 million profit a year earlier. Revenue also declined during the period, according to the prospectus cited by BBG.

Goldman Sachs, Morgan Stanley and JPMorgan Chase are joint sponsors of the Hong Kong IPO, as per BBG.

Shein Seeks To Attract Investors

Shein has considered measures to ease the burden on late-stage investors who backed the company at valuations of up to $64 billion.

Under arrangements outlined in the prospectus, some later investors are set to receive cash payouts and additional shares, helping reduce their effective cost base closer to the planned IPO valuation.

Cornerstone investors include Boyu Capital, Tiger Global, General Atlantic, Tencent Holdings and UBS AM Singapore.

Boyu Capital has committed $150 million, followed by Tiger Global at $53 million and General Atlantic and Tencent at $50 million each, according to deal terms reported by Bloomberg.

Shein plans to use IPO proceeds for technology upgrades, including inventory management systems, marketing, brand awareness, corporate responsibility initiatives and general corporate purposes, the prospectus said.