Shein targets $27bn Hong Kong IPO, down from $100bn peak

Fast-fashion retailer Shein is set to debut on the Hong Kong stock exchange on 1 September, aiming to raise up to HK$13.86 billion ($1.77 billion) by offering nearly 280 million shares at HK$47.60–HK$49.50 each Source: BBC. At the top of the range, the company would be valued at almost $27 billion — a sharp drop from its private-market peak of around $100 billion in 2022 Source: The Guardian. The IPO follows failed attempts to list in New York and London amid regulatory scrutiny Source: CNBC.

Valuation and losses

Shein's valuation has fallen from $98.2 billion in a 2022 funding round to $64 billion in 2023, reflecting slower growth and profitability pressures Source: CNBC. Revenue growth decelerated to 8% in 2025, and the company swung to a $99 million loss in the first quarter of 2026, after the US removed an import-duty exemption on small packages Source: BBC. The Guardian also notes the company cited the Iran war as causing delivery delays and reduced demand Source: The Guardian.

Investor compensation

Shein will pay up to $3.5 billion to selected pre-IPO investors — nearly double the fresh capital raised — to compensate for the valuation slide, according to its prospectus Source: CNA. Eligible investors include entities linked to Boyu Capital, Tiger Global, General Atlantic, and Mubadala Source: CNA. The payments stem from anti-dilution protections triggered by the IPO price falling below earlier funding rounds Source: CNA.

Europe's role

Europe is central to Shein's business, generating $14.8 billion in 2025 revenue — 35.4% of the global total — and averaging 156 million monthly users in the EU Source: Euronews. However, new EU customs duties, effective 1 July, pose risks to its low-price model, prompting plans to raise some prices and hold more local inventory Source: Euronews.