Shein raises $1.7bn in Hong Kong IPO at $26.3bn valuation
Fast-fashion giant Shein raised $1.7 billion in its long-awaited Hong Kong initial public offering, valuing the online retailer at around $26.3 billion, the company said on Aug 31. The valuation is nearly a quarter of the $100 billion it was once valued at, when it raised money at that figure in 2022, making it the world's third most valuable start-up at the time.
The online retailer offered 280 million shares on the market at HK$48.56 apiece, Shein said in a filing to the Hong Kong Stock Exchange, below the maximum announced offer price of HK$49.50.
The listing comes after the company announced a quarterly net loss of $99 million in its last pre-IPO disclosure in July. Shein reported a full-year net profit of $2.06 billion in 2025, according to The Straits Times, while Silicon Republic reports revenue of $41.8 billion in 2025 at roughly $2 billion in income, down from $3.4 billion the year before.
Trading and company background
Shares are to begin trading in Hong Kong on Sept 1. Founded in 2012 in China and based in Singapore, Shein finally won Beijing's approval in July to make its initial public offering in Hong Kong, according to The Straits Times.
The platform surged in popularity during the Covid-19 pandemic, conquering the global fast-fashion market by catering to young customers through social media. But the company now faces slowing growth and increasing regulatory pressure in Europe and the United States, its largest markets.
The IPO took place after plans for New York and London were derailed under regulatory scrutiny, as reported by The Straits Times.
Regulatory and competitive pressures
Shein's downward turn over recent years can be attributed to rising protectionist trade barriers put in place by the US and the EU, who are attempting to help domestic retailers compete against Chinese giants, while also trying to curb the circulation of unsafe goods, according to Silicon Republic.
The US in May eliminated a loophole that allowed American shoppers to buy cheap goods from China without paying tariffs, and the EU introduced a new €3 levy on the millions of low-value packages that are imported to the bloc.
Shein is also facing intense competition from its Chinese retail peer Temu, which announced a revenue of $15.7 billion, per Silicon Republic.
Shein has faced scrutiny over its environmental footprint and allegations of human rights violations. Executive chairman Donald Tang told AFP news agency in 2025 that the company had "zero tolerance" for forced labour.
Use of proceeds and outlook
Shein said it would use the funds to upgrade its technological capabilities and boost its international presence. The company expects to use the raise to enhance its technological capabilities, brand awareness and strengthen its global presence, according to its prospectus, as cited by Silicon Republic.
Full-year sales are expected to rise to $44.3 billion next year, with net income projected at $1.7 billion, according to Bloomberg, as reported by Silicon Republic.
Morningstar's Asia director of equity research, Lorraine Tan, said sales in Asia are helping to offset a fall in US revenue, but the company faces single-digit revenue growth and tariff risks, according to The Straits Times.