Shein targets $1.8 billion Hong Kong IPO at $27 billion valuation, down from $100 billion peak

Shein is heading to Hong Kong’s public market with a valuation that tells a very different story from the one investors heard four years ago.

The Chinese-founded fast-fashion giant is seeking to raise up to HK$13.86 billion ($1.77 billion) through an initial public offering, according to a filing Monday. Shein plans to sell around 280 million Class B shares at HK$47.60 to HK$49.50 apiece, valuing the startup at close to $27 billion at the top of the range.

“Shein is planning to raise up to $13.86 billion in Hong Kong dollars ($1.77 billion) in its initial public offering,” CNBC reported, citing a filing on Monday.

That figure is striking for another reason. Shein was valued at $98.2 billion in a private fundraising round in 2022, meaning roughly $71 billion of its peak valuation has disappeared.

The company expects to set its final IPO price on Aug. 31, with trading scheduled to begin in Hong Kong on Sept. 1.

The listing would cap a long and difficult road to the public markets. Shein confidentially filed for a U.S. IPO in 2023, when it was valued at around $64 billion, but the New York listing never materialized. An attempted London listing also ran into trouble. Shein eventually received approval from the China Securities Regulatory Commission for a Hong Kong listing in early July.

Shein: From $98 billion darling to $27 billion IPO

Shein’s valuation reset reflects more than changing investor sentiment.

Revenue growth slowed to 8% in 2025 from 20.7% a year earlier. The company then posted a $99 million loss in early 2026, hit by the loss of a U.S. import-duty exemption and a one-time accounting charge.

Tariffs have created another headache. Shein has said higher import costs forced it to raise prices, threatening one of the central promises behind its rise: trendy clothing at prices low enough to encourage frequent purchases.

The pressure comes as Hong Kong investors pour money into a very different group of companies. AI and semiconductor businesses have become major attractions in the city’s IPO pipeline, leaving consumer companies such as Shein competing for attention in a market increasingly captivated by technology.

Investor enthusiasm for Shein itself has cooled.

“The company has missed the golden time to list,” William Ma, chief investment officer at GROW Investment Group, previously told CNBC.

Shaun Rein, managing director at China Market Research Group, told CNBC last month that investors and consumers are no longer as excited about the ultra-fast-fashion retailer as they once were.

Shein faces challenges beyond its financial results. The company has faced years of scrutiny over working conditions in its supply chain. Its momentum with shoppers under 35 has weakened, and competition from Temu has intensified the battle for price-conscious online consumers.

It is a remarkable reversal for a company that became one of the biggest private startup stories of the pandemic era.

Founded in Nanjing, China, in 2008 by entrepreneur Chris Xu, Shein used data-driven merchandising, aggressive online marketing and an enormous stream of inexpensive new styles to build a global retail business. Xu’s background in search engine optimization helped shape the company’s early approach to acquiring customers online.

At its 2022 valuation, Shein was worth more than many established publicly traded retailers. Four years later, the company is preparing to enter the public market at less than one-third of that figure.

The Hong Kong IPO will now put that valuation reset in front of public investors.

For Shein, raising nearly $1.8 billion would still rank as a major listing. The bigger question is whether investors see $27 billion as evidence that Shein has finally found its price, or merely another stop on the way down.

Photo Credit: Shein