Shein plans to launch Hong Kong IPO as soon as next week

Online fast-fashion retailer Shein is planning to launch its Hong Kong initial public offering as soon as August 19, according to people familiar with the matter, setting the stage for one of the year's largest listings despite a sharp decline in the company's valuation from its pandemic-era peak.

The Offering

The Singapore-based company has been marketing the share offering to investors this week, Reuters reported on Tuesday, with Shein targeting a valuation between $30 billion and $40 billion. The South China Morning Post reported that the company aims to raise as much as $2.8 billion and is working to achieve a target valuation of $35 billion, with the process expected to be completed by the end of August.reuters+2

The timing and size of the deal could still change, sources told the South China Morning Post. One source said the valuation "won't be less than US$30 billion, as the company works hard to achieve its target of US$35 billion."scmp

Shein did not immediately respond to a Reuters request for comment.reuters

A Steep Valuation Reset

The IPO target marks a dramatic retreat from earlier private fundraising rounds that valued Shein at $98.2 billion in 2022, before falling to $64 billion in 2023 and April 2024. The long-awaited float comes as slowing revenue growth and weaker core earnings weigh on the business. The retailer, known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, swung to a $99 million quarterly loss after the United States removed an import duty exemption on small packages.asiaone+1

Shrinking margins have raised concerns that Shein's rapid expansion is running into headwinds from higher trade costs, tighter regulatory scrutiny, and intensifying competition across global e-commerce.investing

Path to Hong Kong

Shein previously sought to go public in New York or London, but those ambitions were derailed by intense regulatory scrutiny in the U.S. and Europe over the company's supply chain practices and tax structures, the South China Morning Post reported. The pivot to Hong Kong follows approval from the exchange's listing committee, clearing a key regulatory hurdle for the offering.scmp

The listing would represent one of Hong Kong's largest IPOs in recent years and a test of investor appetite for Chinese-founded e-commerce companies amid an uncertain global trade environment.