Shein launched its long-awaited Hong Kong initial public offering Monday, seeking to raise up to HK$13.86 billion ($1.77 billion) at a valuation of close to $27 billion, marking a roughly 72.5% collapse from the $98.2 billion the fast-fashion retailer commanded in a private funding round in 2022.
The company is selling approximately 280 million Class B shares priced between HK$47.60 and HK$49.50 apiece. Shein plans to announce the final offer price on August 31, with shares set to begin trading on the Hong Kong Stock Exchange September 1. The offering is Hong Kong's largest new share sale so far in 2026, surpassing autonomous-driving firm Momenta Global's $751 million offering in July, and ranks as the third-largest IPO in Asia this year.
Shein's valuation has steadily eroded since its 2022 peak, falling to $64 billion in both 2023 and April 2024 before settling into the current range. The company had initially sought a valuation of $30 billion to $40 billion when investor meetings ahead of the offering began. Cornerstone investors including Tencent, Tiger Global and General Atlantic have committed a combined $383 million to the deal.
The steep valuation cut reflects a sharp deceleration in Shein's growth alongside mounting profitability pressure. Revenue growth fell from 41.1% in 2023 to 20.7% in 2024, then to 8% for full-year 2025, before collapsing to just 1.1% in the first quarter of 2026. Full-year 2025 revenue reached approximately $41.85 billion, but net income declined 38.7% to $2.06 billion. The company then swung to a $99 million net loss in the first quarter of 2026, compared with a $395 million profit in the same period a year earlier.
Shein attributed much of the pressure to trade policy, particularly the U.S. removal of the de minimis exemption that had allowed packages valued under $800 to enter the country duty-free, a change that significantly raised costs for the company's American shipments. In its prospectus, Shein said first-half 2026 revenue growth is expected to remain broadly in line with the first quarter's 1.1% pace, with operating margin likely slightly below first-quarter levels due to new European import charges, pricing pressure, and weaker demand in the Middle East linked to the ongoing Iran war.
Operating profit fell 26% in the first quarter to $258 million, with operating margin narrowing to 2.9% from 3.9% a year earlier, as marketing and fulfillment costs rose while sales barely grew. At its targeted valuation, Shein would trade at around 0.7 times forecast sales, cheaper than European rival Zalando's comparable multiple, but well below apparel peers H&M and Inditex.
Shein's Hong Kong listing follows failed attempts to go public in London and New York amid regulatory scrutiny over supply chain transparency and data practices. The company won approval for the Hong Kong listing from the China Securities Regulatory Commission in early July.