Shein prices Hong Kong IPO below top end, raises $1.74 billion

**Shein Raises HK$13.60 billion in Hong Kong IPO, Prices Below Top End of Range**

*Hong Kong, 2 September 2026* – The Singapore‑based, Chinese‑founded fast‑fashion retailer Shein completed its initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX) on 31 August, raising HK$13.60 billion (US$1.74 billion). Shares were priced at HK$48.56 each, below the top end of the marketed range of HK$47.60 to HK$49.50.

The company offered 280 million shares. The IPO was subscribed 5.63 times by domestic investors and 2.59 times by international investors, according to a filing with the HKEX. A strategist at China Everbright Securities International, Kenny Ng, noted that the oversubscription rate was “relatively mild” and that some investors remained cautious about the valuation amid changing trade policies and geopolitical tensions.

**Key Investors**

Existing investors that participated in the offering include:

– Bloomberg family office (Willett Advisors)
– French billionaire Xavier Niel
– Microsoft
– Mukesh Ambani’s Reliance
– Marcelo Claure’s Claure Group
– SoftBank Vision Fund

Cornerstone investors listed in the filing were Boyu Capital, Tiger Global Management, General Atlantic, Tencent, Greenwoods Asset Management, Taikang Life Insurance, and UBS Asset Management Singapore.

**Trading and Market Reaction**

Shein shares began trading on the HKEX on 1 September. In gray‑market trading on the day of the debut, the shares fell more than 10 percent. HKEX announced that options would be launched and short selling would be allowed from the trading debut.

**Use of Proceeds**

Shein said it plans to use most of the proceeds to improve its technology infrastructure, boost brand awareness, and expand its global presence.

**Background**

The IPO follows unsuccessful attempts to list in New York and London. Shein sells inexpensive clothing in approximately 160 countries. The company has faced environmental, social, and governance (ESG) concerns, leading to regulatory investigations and fines in several jurisdictions. It is currently under investigation by the European Commission and the U.S. Federal Trade Commission. Previous investigations resulted in fines in France for alleged fake discounts and in Italy for greenwashing.

In late July, Shein reported a quarterly loss of US$99 million after the United States removed an import duty exemption for small packages. The company also recorded a US$328 million fair‑value charge on convertible redeemable preferred shares following an accounting change.

Article source: singaporestar.com | Image credit: Reuters