Shein to launch Hong Kong IPO, targeting a $27bn valuation

Fast‑fashion giant Shein plans to raise up to HK$13.86bn (£1.3bn; $1.77bn) when its shares start trading on the Hong Kong stock market on 1 September. The company will offer roughly 280 million shares in a price range of HK$47.60 to HK$49.50 each. At the top of the range, the valuation would be about $27bn, a sharp drop from the $100bn it reached in a private funding round in 2022.

Its IPO is backed by Goldman Sachs, Morgan Stanley and JP Morgan after earlier attempts to list in the US and London fell apart amid regulatory scrutiny. The filing released Monday (link here) details the share price and the amount being raised.

In July, Shein announced a quarterly loss, with sales slowing after the United States lifted an import duty exemption on small packages, leaving the company away from a $99m loss in the first quarter of the year versus a $395m net income a year earlier. Uncertainty over the paused US‑China tariff wars also weighs on the business.

Since its founding in 2008, Shein has grown into one of the world’s largest fast‑fashion retailers, selling ultra‑cheap clothing through an impressive network of factories largely based in China. Its revenue now dwarfs rivals such as H&M and Zara, yet the company faces criticism over environmental impact and allegations of forced labour in its supply chains. Shein nevertheless maintains that it has "zero tolerance for forced labour".

Attempts to list the company on the London Stock Exchange collapsed after Shein refused to answer questions about its supply‑chain practices in the face of increased regulatory scrutiny.