Shein targets $25B Hong Kong IPO, down from $98B peak

Shein, the online fast-fashion retailer once valued at nearly $100 billion, is targeting a valuation of around $25 billion for its Hong Kong initial public offering expected to launch later this week, according to three people with knowledge of the matter cited by Reuters.reuters

The Singapore-headquartered company, founded in China in 2012 and known for selling $5 dresses and $10 jeans in approximately 160 countries, is looking at a valuation between $25 billion and $28 billion based on the marketing price band for the offering, one of the sources told Reuters.businesstimes+1

A Steep Decline From Peak Valuation

The target represents a dramatic markdown from the $98.2 billion valuation Shein achieved during a 2022 fundraising round. It is also lower than the $30 billion to $40 billion the company was aiming for at the beginning of August when it kicked off investor meetings, Reuters reported on August 4.irishexaminer+1

Some investors who attended IPO presentations or reviewed recent financial statements told Reuters they were not convinced Shein could return to earlier growth rates. The company reported $41.8 billion in 2025 revenue, an 8% increase, but net profit fell nearly 39% year-over-year. The first quarter of 2026 produced a net loss of $99 million, reversing previous profitability.businesstimes+3

Regulatory Headwinds and a Long Road to Market

Shein originally pursued a listing in New York, which collapsed amid regulatory scrutiny tied to its China-linked supply chain. A London listing was explored next and also fell through. China's Securities Regulatory Commission granted approval for the Hong Kong listing in July 2026.cryptobriefing

The company faces mounting external pressures, including changes to the U.S. de minimis exemption that allowed packages under $800 to enter duty-free, as well as new European Union charges on low-value parcel imports. Competition from Temu, backed by PDD Holdings ↗ 0.74%, has also intensified.whalesbook+1

A lower valuation could further complicate Shein's financials. Under the terms of its IPO filing, the company would be required to provide extra shares to certain pre-IPO investors if the valuation falls below agreed thresholds. The IPO could raise around $3 billion, with a potential trading debut expected around August 28.businesstimes+3