Online fast-fashion retailer Shein’s valuation has fallen by around 70% from a near $100 billion private market peak four years ago, as it seeks to raise up to HK$13.86 billion ($1.77 billion) in its Hong Kong IPO, which launched on Monday.
According to filings, Shein is selling 280 million shares priced between HK$47.60 and HK$49.50 apiece, valuing the company at close to $27 billion at the top of that range.
The valuation marks a sharp decline from earlier private fundraising rounds, which valued Shein at $98.2 billion in 2022 and $64 billion in both 2023 and April 2024.
The company is expected to announce its final IPO price on Aug 31, with trading set to begin on Sept 1.
Known for selling $5 dresses and $10 jeans to shoppers across roughly 160 countries, Shein had initially sought an IPO valuation of between $30 billion and $40 billion when investor meetings ahead of the listing first began.
The marked decline in valuation follows growing investor concerns over slowing growth, rising costs and shifting market conditions, with some investors expressing doubt that Shein could return to the growth rates that once valued it at nearly $100 billion four years ago.
Cornerstone investors led by existing shareholders Boyu, Tiger Global and General Atlantic have subscribed for around $383 million worth of Shein shares, according to the prospectus. Tencent, Greenwoods, Taikang Life and UBS Asset Management are also participating as stock investors.
Shein said approximately 80% of the funds raised through the IPO will be used to enhance its technology capabilities and strengthen its brand presence globally. The company has also agreed to pay up to roughly $3.5 billion in cash to certain investors who purchased special shares in earlier private funding rounds, the prospectus showed.
Shares sold in the Hong Kong IPO will carry one-tenth the voting rights of shares held by the company’s founders. Co-founders Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren will collectively control 90% of Shein’s voting rights following the listing.
Growth Slows Sharply
The long-awaited listing comes at a time when slowing revenue growth and weaker core earnings are weighing on Shein’s business, with shrinking margins also raising concerns that its expansion is facing headwinds from rising trade costs, tighter regulatory scrutiny and intensifying competition across global e-commerce.
Shein said in its prospectus that first-half 2026 revenue growth is expected to be broadly in line with the 1.1% growth recorded in the first quarter, while its operating margin is expected to come in slightly lower than the first-quarter level. The company attributed this to new European import charges, pricing pressure and weaker demand in the Middle East linked to the Iran war.
Shein swung to a $99 million quarterly loss after the United States removed an import duty exemption on small packages, compounded by a $328 million fair-value charge on convertible redeemable preferred shares following an accounting change.
Shein’s IPO stands as the largest new share sale in Hong Kong in 2026, surpassing autonomous driving firm Momenta Global’s $751 million offering in July. It ranks as the third-largest IPO in Asia this year, trailing CXMT and China Resources New Energy, which raised $9.8 billion and $3.6 billion respectively through Chinese onshore listings.
Hong Kong IPOs have raised approximately $41 billion so far this year, a record for the period and more than double the $17 billion raised over the same period a year earlier, according to LSEG data.
