Shein Targets $26B-$27B Valuation for Hong Kong IPO

Fast-fashion giant Shein Global Holdings Ltd. is targeting a valuation of between $26 billion and $27 billion for its planned Hong Kong initial public offering, representing a sharp drop from its peak valuation of roughly $100 billion in 2022.

The Singapore-headquartered retailer aims to raise about $2 billion through the Shein IPO, according to Bloomberg. Existing shareholders could purchase as much as half of the offering, potentially providing significant support for the deal.

Shein is reportedly preparing for a Hong Kong listing around the end of August. The company had recently pursued a valuation of approximately $30 billion but faced resistance from prospective investors. The IPO's final valuation, fundraising size and timing could still change as negotiations continue.

Founded in China before moving its headquarters to Singapore, Shein has faced a lengthy path toward becoming a publicly traded company. Previous attempts to secure listings in New York and London failed to materialize, making Hong Kong the latest destination for its IPO ambitions.

The company's valuation has fallen considerably as its once-rapid growth slows amid stronger competition, rising costs and changes to global trade rules. Shein faces intense competition from Temu, the international e-commerce platform operated by PDD Holdings.

Shein built its global fast-fashion business by selling inexpensive, trend-driven clothing shipped directly from suppliers to consumers. However, U.S. tariffs and disruptions linked to the Middle East conflict have increased material costs, contributing to higher consumer prices.

Financial performance has also weakened. Shein recorded a $99 million loss in the first quarter, compared with a $395 million profit during the same period a year earlier, according to its preliminary prospectus. The company also reported slower revenue growth.

Additional regulatory pressure could emerge in Europe, where a new European Union levy on packages valued below €150 is expected to affect Shein's cross-border e-commerce model.

Shein's major investors include IDG Capital, Mubadala Investment Co., Coatue Management and HSG.