Shein aims for $1.77 billion in its Hong Kong IPO as its valuation declines
Shein aims to raise $1.77 billion through its Hong Kong IPO, facing challenges from slowing growth, tariffs, and increased competition that impact its valuation and attractiveness.
Fast-fashion retailer Shein is aiming to raise as much as HK$13.86 billion ($1.77 billion) through its initial public offering in Hong Kong, as stated in a filing on Monday.
The company is offering approximately 280 million Class B shares priced between HK$47.60 and HK$49.50 each, which places its valuation at nearly $27 billion at the upper end of the price range.
Shein is set to reveal the final offer price on August 31, with its shares slated to commence trading on the Hong Kong Stock Exchange on September 1.
The proposed valuation indicates a significant drop from the company’s highest private-market valuations. According to Reuters, Shein was valued at approximately $98.2 billion in 2022, but this figure decreased to $64 billion in 2023 and April 2024.
The decline indicates a deceleration in growth, increasing pressure on profitability, and escalating costs impacting the retailer’s operations.
Shein’s revenue growth decelerated to 8 percent in 2025, down from 20.7 percent the previous year. The company reported a loss of $99 million in early 2026, attributed to the loss of a US import-duty exemption and a one-off accounting charge.
US tariffs have further impacted the company’s sales and revenue, with Shein stating that it has had to absorb some of the additional costs while raising prices for customers.
The retailer obtained approval for a Hong Kong listing from the China Securities Regulatory Commission in July, after previous unsuccessful attempts to list in London and New York.
Investor enthusiasm for Shein has diminished due to worries about its growth potential and increasing competition in the fast-fashion sector.
Shaun Rein, managing director of China Market Research Group, stated that investors and consumers have lost some of their previous enthusiasm for the company.
“The company has missed the prime opportunity to list,” William Ma, chief investment officer at GROW Investment Group, stated earlier.
Investor interest has been influenced by the congested IPO pipeline in Hong Kong, which is becoming increasingly led by companies in the artificial intelligence and semiconductor sectors.
Shein is under ongoing scrutiny regarding the labor conditions of its suppliers, and competition from rivals like Temu has become more intense.
The company has faced challenges in retaining its attractiveness to shoppers under the age of 35, which raises concerns about its capacity to sustain the rapid growth that previously propelled its valuation to unprecedented heights.
