Shein targets $27bn valuation in Hong Kong listing

Fast-fashion retailer Shein is preparing to list on the Hong Kong stock exchange in September, targeting a valuation of up to $27 billion (£19.8 billion). The company, known for its low-cost clothing, has set a price range for its shares and expects to raise as much as $1.8 billion (£1.3 billion) from the initial public offering (IPO), according to reports.

The IPO marks a significant step for Shein, which had previously sought to list in New York and London but faced regulatory and political obstacles. The company is now turning to Hong Kong as its listing venue, with around 90% of the shares earmarked for overseas investors.

Pricing and valuation

Shein's shares will be priced between HK$47.60 and HK$49.50 (approximately $6.10–$6.35), giving the company a valuation of up to $27 billion (£19.8 billion). This is a notable decline from the $100 billion valuation the company achieved in a 2022 funding round. Initial plans had targeted a $30 billion valuation.

The IPO is expected to raise about HK$14 billion (around $1.8 billion), with an option to sell an additional 42 million shares. Investment banks Goldman Sachs, Morgan Stanley, and JPMorgan are backing the offering.

Regulatory headwinds

Shein's listing comes amid significant regulatory changes affecting its business model. In May 2025, the United States removed the 'de minimis' exemption, which had allowed low-value packages to enter the country duty-free. The European Union followed suit, abolishing its €150 customs-duty exemption for low-value consignments on 1 July 2025 and introducing a €3 duty on small parcels in early August 2025.

These measures have directly impacted Shein's cross-border sales, particularly in Europe, which generated €12.7 billion ($14.8 billion) in revenue for the company in 2025, representing 35.4% of its global revenue. The region also accounted for an average of approximately 156 million monthly users between August 2025 and January 2026, according to company filings.

As a result of the new duties, Shein has indicated it may adjust prices in affected markets. The company is also expected to allocate about 40% of the net IPO proceeds—around HK$5.25 billion—to marketing and global expansion over the next four years.

Financial performance

Shein reported a net loss of $99 million in the first quarter of 2026, a sharp reversal from previous profitability. The company's net profit fell from $2 billion in 2024 to $2 billion in 2025, a decline of about 40% according to analysts. No further breakdown was provided in the filing.

Outlook

The Hong Kong listing marks a milestone for Shein, which has faced regulatory hurdles in the US and Europe. The company's ability to adapt to the changing trade environment will be closely watched by investors.

The IPO is expected to be one of the largest in Hong Kong this year, according to market observers.