Shein valuation plunges to $27 billion in Hong Kong IPO

**Shein’s Hong Kong IPO Valuation Falls to About $27 billion**

*Hong Kong, 26 August 2026* – Fast‑fashion retailer Shein, founded in China and headquartered in Singapore, announced on Thursday that it will seek to raise up to US$1.8 billion in an initial public offering (IPO) on the Hong Kong Stock Exchange. The offering would value the company at roughly US$27 billion, about 70 percent lower than its private‑market valuation four years ago.

The company filed to sell 280 million shares at a price range of HK$47.60 to HK$49.50 per share. At the top of the range, the proceeds would total HK$13.86 billion (US$1.77 billion). The final IPO price is slated to be disclosed on 31 August, with trading expected to commence on 1 September.

Cornerstone investors, led by existing shareholders Boyu, Tiger Global and General Atlantic, have committed to purchase approximately US$383 million of shares. Additional participants include Tencent, Greenwoods, Taikang Life and UBS Asset Management.

Shein plans to allocate about 80 percent of the proceeds to technology upgrades and to expand its brand and global presence. The remaining funds are earmarked for general corporate purposes.

The reduced valuation follows a series of unsuccessful attempts to list the company in New York and London over the past four years. According to Lorraine Tan, director of equity research for Asia at Morningstar, “The drop in Shein’s valuation largely reflects the change in prospects for the company from, say, two to three years ago when its IPO was first mooted. We believe interest in Shein by global investors has probably cooled as a result, leading to the reduced listing price.”

Shein’s growth has slowed, with first‑quarter 2026 revenue in the United States falling 14.3 percent, a decline the company attributes to the removal of an import‑duty exemption for small packages. The firm also cited new European import charges, pricing pressure, and weaker demand in the Middle East—linked to the ongoing conflict in Iran—as factors affecting its outlook. For the first half of 2026, Shein expects revenue growth to be broadly in line with the 1.1 percent recorded in the first quarter, while its operating margin is projected to be slightly lower.

The IPO represents the largest new share sale in Hong Kong for 2026, surpassing the US$751 million offering by autonomous‑driving company Momenta Global in July.

Article and image source: singaporestar.com