Shein Plans $1.77 Billion Hong Kong IPO Amid Valuation Drop
Fast-fashion retailer Shein is preparing for an initial public offering (IPO) in Hong Kong, aiming to raise up to $1.77 billion by selling 280 million Class B shares priced between HK$47.60 and HK$49.50 per share. The final pricing will be announced on August 31, with trading expected to begin September 1. This comes after a significant drop in the company's valuation from $98.2 billion in 2022 to around $27 billion at the top of its current IPO range. The decline is attributed to slower revenue growth and increased costs due to tariffs, which have hurt profitability. Shein reported an approximate $99 million loss early this year amid a one-time accounting charge and the expiration of a U.S. import-duty exemption. The company has also struggled with ethical concerns over supplier working conditions and competition from rivals like Temu. Shein previously attempted IPOs in London and New York but ultimately secured approval for its Hong Kong listing in July 2026. Analysts suggest that the timing of this offering may not be favorable, as investor interest has shifted toward AI and chip firms rather than traditional retail.
Topics: Hong Kong market IPO Shein valuation drop