Shein seeks nearly 27 billion valuation in Hong Kong IPO

Shein is targeting a near 27 billion market valuation in its Hong Kong IPO, with a share sale of about 280 million class B shares. The company set a price range of HK$47.60 to HK$49.50, with the final price due on Aug. 31 and trading expected to begin on Sep. 1.

Shein plans to offer nearly 280 million shares priced between HK$47.60 and HK$49.50 each, according to filings cited by CNBC and the BBC. At the top of the range, the sale would raise $1.77bn and value the company at $26.8bn, the BBC reported.

Both outlets said the final offer price will be announced by the company on Aug. 31, with shares expected to start trading on Sep. 1, according to CNBC and the BBC.

CNBC reported that Shein’s valuation has fallen sharply as investor interest has waned, citing Reuters. The retailer’s value was $64bn in 2023 and April 2024, down from $98.2bn in a 2022 private fundraising round, Reuters said.

Shaun Rein, managing director at China Market Research Group, said investor and consumer enthusiasm for the ultra-fast fashion retailer has cooled from earlier periods, according to CNBC.

The BBC said Shein’s long-awaited public listing comes after failed attempts in the US and London linked to regulatory challenges and scrutiny. It added that Shein has customers in more than 150 countries since it was founded in 2008 and that it sells ultra-cheap clothes supported by a network of factories in China, the BBC reported.

The BBC also reported that Goldman Sachs, Morgan Stanley, and JP Morgan are backing the IPO. Shein disclosed in a filing on Monday that it will offer nearly 280 million shares for between HK$47.60 and HK$49.50 each, the BBC said.

Shein said it lost $99m in the first three months of the year versus net income of $395m a year earlier, according to the BBC. The outlet also reported that uncertainty around paused US-China tariff measures and the end of the de minimis exemption in the US have added pressure, while Iran-related disruption hit demand, increased costs, and delayed some deliveries.