Shein targets $27 billion Hong Kong IPO, a significant drop from 2022 valuation

Shein's Hong Kong IPO Details

Shein is proceeding with an initial public offering in Hong Kong, aiming to raise up to $1.77 billion (HK$13.86 billion). The fast-fashion retailer plans to sell approximately 280 million Class B shares, with prices ranging from HK$47.60 to HK$49.50 per share. This pricing would value the company at close to $27 billion at the upper end of the range.

Significant Valuation Decline

The projected IPO valuation of $27 billion represents a substantial decrease from Shein's previous private fundraising rounds. In 2022, the company was valued at $98.2 billion, and more recently, at $64 billion in 2023 and April 2024. This decline indicates a significant shift in market perception and investor confidence.

Factors Contributing to Lower Valuation

Several factors have contributed to Shein's reduced valuation. The company has experienced a slowdown in its rapid growth, with revenue growth decelerating to 8% in 2025 from 20.7% a year prior. Profitability has also been impacted by the loss of a U.S. import-duty exemption and a one-time accounting charge, leading to a $99 million loss in early 2026. Tariffs have also increased costs, which Shein has passed on to customers.

Investor and consumer enthusiasm for the ultra-fast fashion retailer has waned. Experts note that Shein has missed its optimal listing window, and the Hong Kong IPO market is currently dominated by AI and chip firms. Additionally, Shein faces ongoing ethical concerns regarding working conditions, has lost momentum with younger shoppers, and struggles against rivals like Temu.

IPO Timeline and Previous Attempts

Shein received approval for its Hong Kong listing from the China Securities Regulatory Commission in early July, following unsuccessful attempts to go public in London and New York. The final IPO price is expected to be announced on August 31, with shares anticipated to begin trading on September 1.