Shein has launched book building for a Hong Kong initial public offering that could raise up to HK$13.86 billion, valuing the fast-fashion retailer at as much as $26.81 billion. The float follows failed attempts to list in the US and London and comes as tariff changes and shrinking margins pressure the company's earnings.
Shein prices Hong Kong listing after years of delay
Shein launched book building for a Hong Kong IPO on Monday, aiming to raise up to HK$13.86 billion ($1.77 billion) at a valuation of as much as $26.81 billion. The company is selling 280 million shares for between HK$47.60 and HK$49.50 each, and it will price the offering on August 31 before debuting on September 1.
The listing caps a long search for a public market willing to take Shein. China's securities regulator approved the Hong Kong listing on July 10, clearing the final regulatory hurdle after the company had already struck out trying to list in both the US and London. The timeline still slipped once more: book building had originally been targeted for August 28 before moving up to this week.
A much smaller company than in 2022
Existing shareholders are expected to take up a significant chunk of the offering, and UBS's asset management arm has been named a cornerstone investor. Even so, the deal values Shein far below where private investors once priced it, marking roughly a 73% haircut from the nearly $100 billion valuation it carried privately in 2022.
That decline tracks a rougher operating picture. Shein, which sells $5 dresses and $10 jeans to shoppers in about 160 countries, swung to a $99 million quarterly loss after the US removed an import duty exemption on small packages. The company also booked a $328 million fair-value charge on convertible redeemable preferred shares following an accounting change.
Slowing growth meets tighter competition
Slowing revenue growth and weaker core earnings are weighing on the business, and shrinking margins have raised concerns that Shein's rapid expansion is running into higher trade costs, tighter regulatory scrutiny, and intensifying competition across global e-commerce. Still, revenue reached $41.9 billion in 2025, up from $32.1 billion in 2023, showing the top line kept growing even as profitability slipped.
The Hong Kong float is shaping up to be one of the exchange's largest listings in recent memory, and could reinforce the venue's role as the default listing destination for Chinese-founded companies facing headwinds in Western markets.
Sources: Investing.com, Crypto Briefing
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