Fast-fashion online retailer Shein is preparing for its long-awaited stock market debut in Hong Kong on September 1, targeting a company valuation of up to $27 billion. The move comes after regulatory challenges in the United States and the United Kingdom forced the e-commerce giant to abandon plans to list its shares in New York and London.
According to a regulatory filing, Singapore-headquartered Shein plans to offer nearly 280 million shares priced between HK$47.60 and HK$49.50. At the top of that range, the firm aims to raise up to HK$13.86 billion ($1.77 billion). However, the $27 billion target valuation represents a sharp drop from the $100 billion valuation Shein achieved during a private fundraising round in 2022, reflecting slower sales growth and higher operating costs.
The initial public offering (IPO)—the process where a private company sells shares to the public for the first time—is backed by major Wall Street investment banks, including Goldman Sachs, Morgan Stanley, and JP Morgan.
Shein has faced growing financial pressures in recent months. In July, the company disclosed a net loss of $99 million for the first quarter of the year, compared with a $395 million net profit during the same period a year earlier. The downturn was partly caused by the US removing an import duty exemption on small, low-value packages, alongside broader tariff uncertainties between the US and China.
Founded in China in 2008, Shein grew rapidly into a global retail powerhouse with customers in over 150 countries. Its business relies on a network of Chinese factories that manufacture ultra-cheap clothing based on real-time internet fashion trends, allowing it to generate higher revenues than traditional competitors like H&M and Zara.
Despite its commercial success, Shein faces ongoing criticism from lawmakers and activists over its environmental impact and allegations regarding labor practices in its supply chain. The company has denied wrongdoing, stating that it maintains a zero-tolerance policy toward forced labor.