Shein Launches Up to $1.8 Billion Hong Kong IPO at $26.8 Billion Valuation
Synopsis
The fast-fashion giant is offering 280 million shares at up to HK$49.50 each, seeking as much as HK$13.86 billion in its Hong Kong listing and targeting a September 1 debut.
Key Highlights
- Shein opened its Hong Kong IPO seeking up to HK$13.86 billion ($1.77 billion)
- The company plans to sell a total of 280 million shares at between HK$47.60 and HK$49.50 each.
- Shein will finalise the offering price on Aug. 31, and trading is expected to start on Sept. 1.
- Up to 80 per cent of IPO proceeds will be used for technology upgrades and global brand expansion.
Shein Mindes IPO in Hong Kong
Shein sets price range for Hong Kong IPO of $1.77 billion The firm will sell 280 million shares at HK$47.60 to HK$49.50 each. Shein would have a valuation of approximately $27 billion, assuming the shares are priced at the top end. The pricing for the IPO is expected to be announced on August 31 and trading will begin on September 1.
Valuation Has Fallen Sharply
Even with an expected IPO valuation below what investors were contributing to Shein in private funding rounds a year ago. It was worth $98.2 billion in 2022, $64 billion in 2023 and then again had another dip to $54bn this April (2024).
Before the IPO attempt, Shein was eyeing a $30 billion to $40 billion valuation. The revised figure dials back earlier expectations due to slower growth, rising costs and shifting conditions in its major markets. Investors are now tracking whether Shein can recapture the runaway growth behind previous valuations.
Use of Proceeds With Shein’s IPO
As part of the IPO, Shein said it plans on using around 80% of funds raised to invest in technology and escalate brand efforts to grow its international footprint.
Boyu, Tiger Global and General Atlantic are among those committed to purchasing approximately $383 million in shares from existing investors. Also participating are Tencent, Greenwoods Investment Management, Taikang Life and UBS Asset Management.
The company also has tentatively agreed to pay up to $3.5 billion in cash to some investors who had bought special shares during prior private fundraising rounds.
Founders Keep Much of the Voting Power
The shares to be offered in the Hong Kong IPO will have only one-tenth of the voting rights that shares held by Shein’s founders carry. The listing will allow the co-founders (Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren) to keep 90% of the company’s voting rights after it goes public.
Slump At Shein
Shein’s expansion has slowed as the company grapples with rising costs, increased competition and stricter regulations.
Revenue growth for the first half of 2026 is expected to be broadly in line with the 1.1% recorded in Q1, adds the company. The company also sees its operating margin slightly lower.
Shein also cited new import duties in Europe, the need to keep prices down and lower demand in the Middle East where its business was affected by the Iran war as a drag on revenue.
It also delayed the shipping of larger packages and posted a quarterly loss of $99 million after the US revoked an exemption allowing small packages to enter tax-free. It also booked a $328 million charge due to an accounting change related to convertible redeemable preferred shares.
Largest IPO in Hong Kong for 2026
This makes Shein’s listing the largest IPO in Hong Kong in 2023. It’s even bigger than the $751 million offering from autonomous driving firm Momenta Global in July.
It ranks as the third-largest IPO in Asia in 2026, after CXMT’s $9.8 billion deal and China Resources New Energy’s $3.6 billion initial public offering (IPO) in mainland markets of China. So far this year, Hong Kong IPOs have raised approximately $41 billion, more than double the roughly $17 billion over the same period last year.
Source: Reuters
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