Shein is seeking to raise as much as $1.8 billion through its long-awaited Hong Kong initial public offering, valuing the fast-fashion company at as much as approximately $27 billion after years of efforts to reach the public markets, according to Bloomberg.
The Singapore-headquartered company plans to sell approximately 280 million shares at between HK$47.60 and HK$49.50 each.
At the top of the range, the offering would raise approximately HK$13.86 billion, or roughly $1.77 billion, and give Shein a market capitalization approaching $27 billion.
The valuation represents a dramatic reset from Shein’s private-market peak.
The company was valued at approximately $100 billion in 2022, meaning the proposed IPO valuation is roughly 70% below that level.
Shein was subsequently valued at approximately $64 billion during funding rounds in 2023 and April 2024.
The offering represents the culmination of a prolonged effort to become publicly traded.
Shein previously pursued listings in New York and London but abandoned those plans amid regulatory scrutiny and broader geopolitical tensions.
Founded in China and now headquartered in Singapore, Shein ultimately turned to Hong Kong after navigating an extended regulatory approval process.
The company plans to determine the final IPO price on August 31, with shares scheduled to begin trading on the Hong Kong Stock Exchange on September 1.
The transaction would become the largest new-share offering in Hong Kong during 2026, exceeding Momenta Global’s approximately $751 million IPO completed in July.
Shein has also secured significant participation from cornerstone investors.
Existing shareholders Boyu Capital, Tiger Global and General Atlantic are among investors that have committed to purchasing approximately $383 million of shares.
Tencent, Greenwoods, Taikang Life and UBS Asset Management are also participating in the cornerstone tranche.
Goldman Sachs, Morgan Stanley and JPMorgan are serving as joint sponsors of the offering.
Shein expects to deploy approximately 80% of its IPO proceeds toward improving technology and expanding its brand and global presence.
Technology investments are expected to include inventory management, AI and data analytics, while other proceeds will support marketing, supply-chain governance and decarbonization initiatives.
The IPO comes as Shein faces a more challenging operating environment than when it achieved its nearly $100 billion private valuation.
Revenue growth has slowed considerably, while tariffs, regulatory costs and increased competition are putting pressure on margins.
Shein expects first-half 2026 revenue growth to remain broadly consistent with the 1.1% growth recorded during the first quarter, while operating margin is expected to decline slightly from its first-quarter level.
The company recorded a $99 million loss during the first quarter of 2026, compared with a $395 million profit during the prior-year period.
Its results were affected by a $328 million fair-value charge related to convertible redeemable preferred shares as well as changes to U.S. trade rules.
The elimination of the U.S. de minimis exemption for low-value packages has been particularly significant for Shein’s business model.
The rule previously allowed packages valued below $800 and shipped directly from China to enter the U.S. without duties.
Shein said Chinese-origin products shipped into the U.S. through its platform can now face tax rates ranging from 10% to 87.5%.
The company reported that higher duties and taxes contributed to a 14.3% year-over-year decline in U.S. revenue during the first quarter.
European import charges, pricing pressure and weaker Middle Eastern demand have added further pressure.
Shein also faces increasingly intense competition from PDD Holdings-owned Temu and established apparel companies competing for price-sensitive online customers.
The lower IPO valuation has also created an unusual financial consequence for some of Shein’s existing private investors.
The company has agreed to provide as much as approximately $3.5 billion in cash and additional shares to certain late-stage investors whose preferred securities included valuation protection provisions.
Those investors include entities associated with Boyu Capital, Tiger Global, General Atlantic, Thrive Capital, Mubadala and Brookfield.
The protections were triggered because Shein’s IPO valuation is substantially below the valuations associated with several earlier private financing rounds.
The compensation could include approximately $2.2 billion in cash, 19.6 million additional shares and another roughly $1.33 billion of payments associated with the IPO and scheduled installments.
Despite those protections, several of the same existing investors are participating in the IPO as cornerstone buyers, signaling continued exposure to Shein following the listing.
Shein’s founders will also retain substantial control following the IPO.
Shares sold to public investors will carry one-tenth the voting rights of shares held by Shein’s founders.
Co-founders Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren are expected to control approximately 90% of the company’s voting power following the offering.
Shein enters the public market as a much more mature business than the high-growth company that attracted a nearly $100 billion valuation four years ago.
The IPO therefore represents both a major liquidity event for one of the world’s largest privately held consumer technology companies and a significant valuation reset as public investors weigh slower growth, higher trade costs, regulatory pressure and the company’s ability to preserve profitability across its global fast-fashion platform.
