Fast-fashion giant Shein has lowered its valuation for its upcoming Hong Kong stock exchange listing, set for 1 September, to close to $27bn (£19.8bn). This marks a significant drop from its near-$100bn private market peak four years ago, following the company's swing to a loss earlier this year.
IPO details and pricing
Shein announced on Monday it would offer nearly 280 million shares at a price range of HK$47.60 to HK$49.50 each. At the top end of the range, this would raise roughly £1.3bn for the company and give it a market valuation of just under £20bn. The final offer price will be set the day before trading begins on 1 September.
The online retailer's listing is one of the most anticipated initial public offerings (IPOs) in recent years, after plans to list in New York were blocked by regulators over forced labour concerns. Shein then considered a £50bn float in London but faced similar questions about its supply chain from campaigners, MPs and investors.
Financial performance and challenges
Shein swung to a loss of $99m in the first three months of this year, compared with a net income of $395m the year before. The US removal of an import duty exemption on small packages hit its sales in the country. The company also cited delays to deliveries in some leading markets due to the Iran war, as well as reduced demand from the economic fallout of the conflict.
Founded by entrepreneur Chris Xu, Shein runs most of its operations from China but sells all its goods outside the country. It moved its headquarters to Singapore between 2021 and 2022, a move analysts said was intended to avoid increasing global scrutiny of Chinese firms. In early 2025, it refused to reassure British MPs that its products do not include cotton produced in the Xinjiang region of China, which has been linked to forced Uyghur labour.
Market position and expansion
Shein's European customer base rose to 156 million average monthly users by the end of last year, making it one of the continent's biggest e-commerce platforms alongside Amazon. The company partly benefits from sending goods directly to shoppers, including to the UK and US, from China, which attracts fewer taxes. This tactic has prompted calls for a change in tax rules.
In November, Shein opened its first-ever physical outlet, a dedicated space in the BHV department store in Paris. Hundreds of customers lined up on its opening day, and dozens more gathered to protest, requiring a heavy police presence.
Susannah Streeter, the chief investment strategist at Wealth Club, said: “Shein may still be one of the biggest names on the fast-fashion catwalk, but the IPO is going to be a harder sell, with plenty of investors questioning whether its low-cost formula still has the star power to deliver the growth they’re looking for.”
