Key facts
- Shein launched its Hong Kong IPO on Monday, seeking to raise up to $1.77 billion.
- The company is targeting a valuation of $26 billion to $27 billion.
- This valuation is a significant decrease from its previous private market valuation of nearly $100 billion.
- Shein reported a $99 million net loss in the first quarter of 2026.
- US tariff changes impacting its direct-to-consumer shipping model are a key challenge.
Online fast-fashion retailer Shein launched its Hong Kong IPO on Monday, aiming to raise up to HK$13.86 billion ($1.77 billion) and targeting a valuation between $26 billion and $27 billion. This valuation represents a significant decrease from its private market peak of nearly $100 billion in 2022, a drop of approximately 73%.
China's securities regulator approved Shein's listing on July 10, following failed attempts to go public in the US and London. UBS's asset management division is expected to be a cornerstone investor, with existing shareholders likely to purchase a substantial portion of the offering. The IPO timeline was adjusted due to investor concerns regarding the initial valuation expectations and softening demand in Shein's key markets.
Shein reported revenue of $41.9 billion in 2025, an increase from $32.1 billion in 2023. However, the company experienced a $99 million net loss in the first quarter of 2026, influenced by changes in US tariffs and accounting adjustments. The company's business model, which relied on shipping low-cost packages directly from Chinese factories and often benefited from the US de minimis exemption for goods under $800, has been impacted by alterations to this threshold.
The Hong Kong listing is anticipated to be one of the largest in recent years and could solidify the city's position as a preferred venue for Chinese companies facing geopolitical challenges in Western markets. The capital raised is intended for investments in supply chain diversification, technology, and market expansion.