Shein clears Hong Kong listing hearing ahead of IPO

Shein Global Holdings has passed its listing hearing with the Hong Kong Stock Exchange, clearing one of the final hurdles before what is expected to be one of the exchange's largest initial public offerings this year. The online fast-fashion retailer plans to issue up to 341.6 million shares and could launch its IPO as early as this week, with Goldman Sachs The Goldman Sachs Group, Inc. ↘ 1.38%, Morgan Stanley ↘ 0.89%, and JPMorgan ↘ 0.73% underwriting the deal.benzinga

Valuation Under Pressure

The milestone comes amid mounting questions about whether Shein can justify a valuation above $40 billion. According to Bloomberg, the company faces pressure to flatten its valuation to around $30 billion — a steep markdown from the nearly $100 billion it commanded during a 2022 fundraising round and below the $64 billion of 2024.cnbc

Revenue grew just 8% to $41.8 billion in 2025, a sharp deceleration from 20.7% the prior year. In the first quarter of 2026, Shein swung to a $99 million loss after the U.S. removed the de minimis import-duty exemption on small packages. "The company has missed the golden time to list," said William Ma, chief investment officer at GROW Investment Group.cnbc

Headwinds Mount on Multiple Fronts

Shein disclosed this week that its U.S. business is under investigation by the Federal Trade Commission for unspecified reasons and could face fines. The company's U.S. market share of apparel, accessories, and footwear spending has declined from a peak of about 5% in the first quarter of 2025, according to Consumer Edge analyst Michael Gunther, with losses steepest among 18-to-34-year-olds — the demographic that fueled its rise.cnbc

The European Union's new fee on low-value imports, imposed this month, has prompted Shein to pause most advertising spending in Europe, a region that supplied roughly a third of its revenue last year, according to e-commerce analyst Juozas Kaziukenas.cnbc

A Changed Market

Lenny Zephirin of The Zephirin Group expects Shein's post-listing market capitalization to settle in the high-$20 billion to low-$30 billion range, noting the company is "transitioning from a high-growth, technology-enabled fast-fashion platform to a mature global apparel retailer." Hong Kong's IPO pipeline is now dominated by AI and semiconductor listings, leaving Shein to compete for investor attention in an unfavorable market environment. "The Shein appetite has gone. It no longer exists," Zephirin said.cnbc