Shein seeks up to $2.3 billion in long-awaited Hong Kong IPO

A Milestone Listing

Fast-fashion retailer Shein is set to debut on the Hong Kong Stock Exchange on September 1, in a long-awaited listing that would value the group at close to US$27 billion, as reported by Malay Mail and The Guardian. The online retailer plans to offer 280 million shares at a price between HK$47.60 and HK$49.50, raising up to HK$13.86 billion (US$1.77 billion), according to a filing to the bourse. The final price will be announced on August 31, with the higher figure valuing the company at around US$26.8 billion.

The listing marks the culmination of a journey that began with plans to float in New York and London, which were held back in recent years by regulatory hurdles, according to media reports cited by both Malay Mail and The Guardian. Shein finally won Beijing's approval last month to proceed with its Hong Kong IPO, after waiting about a year since filing, as The Straits Times noted.

A Reduced Valuation

Shein's valuation has dropped by about 70% from a near $100 billion private market peak four years ago, as reported by The Guardian. The Straits Times attributes this decline to tariffs, competition from PDD Holdings Inc's Temu, and regulatory pressure, noting that the company is going public as it is being buffeted by these challenges.

Founded in China and now headquartered in Singapore, Shein moved its headquarters between 2021 and 2022, a move analysts say was intended to avoid increasing global scrutiny of Chinese firms, as Malay Mail and The Guardian reported. The company has downplayed its Chinese roots over the years, according to The Straits Times, but it was forced to change tack after regulators in China withheld approval for the London IPO.

Financial Performance and Market Conditions

Shein reported a full-year net profit of US$2.06 billion in 2025 but swung to a US$99 million quarterly loss as the United States scrapped an import duty exemption on small packages, according to Malay Mail. The Straits Times reports a similar swing in its IPO prospectus: a loss of HK$99 million in the first quarter of 2026, compared with a HK$395 million profit a year earlier, with revenue also declining.

US tariffs followed by war in the Middle East have led to higher material costs and increased prices for consumers, as The Straits Times details. These factors, along with rising competition from Temu and regulatory pressure, have contributed to the valuation decline.

Global Presence and Scrutiny

Despite the challenges, Shein's European customer base rose to 156 million average monthly users by the end of last year, making it one of the continent's biggest e-commerce platforms, alongside China's AliExpress (193 million users) and Amazon (about 180 million users), as The Guardian reported. In November, the group opened its first-ever physical outlet, a dedicated space in the BHV department store in Paris, where hundreds of customers lined up on opening day.

The company has faced criticism on multiple fronts. Protesters at Shein's Paris outlet slammed working conditions, environmental costs, and unfair competition, as The Guardian noted. Shein has also been criticized over the discovery of childlike sex dolls on its platform, leading it to ban all sex dolls, a development reported by both Malay Mail and The Guardian. French authorities imposed two fines on Shein in June totalling more than 22 million euros, and Shein has paid over 210 million euros in various French fines over the years; Italy has also imposed fines, according to the same sources.

The company maintains it holds suppliers to strict compliance standards and does not tolerate forced labour. Malay Mail quotes the executive chairman telling AFP that the company has 'zero tolerance' on forced labour.

Use of Proceeds and Sponsors

With the funds raised from the IPO, Shein said it aims to finance its technological capabilities as well as boost its international presence, as reported by Malay Mail and The Guardian. The Straits Times adds that proceeds will also go toward enhancing technology such as inventory management systems, investing in marketing to improve its image globally, and strengthening supply chain governance and decarbonisation efforts.

Shareholders include IDG Capital, Mubadala Investment Co, Coatue Management, and HSG – formerly known as Sequoia China – according to The Straits Times, which also names Goldman Sachs, Morgan Stanley, and JPMorgan as joint sponsors of the IPO.

Looking Ahead

As Shein prepares to start trading on September 1, the listing will be closely watched. The company's ability to navigate tariffs, competition, and regulatory scrutiny will be key to its performance as a public entity.