Shein Sets Hong Kong IPO Valuation at $26.5 Billion Amid Market Challenges

Shein, the fast-fashion giant, is set to price its Hong Kong initial public offering (IPO) at around $26.5 billion, according to sources familiar with the matter. The company plans to raise approximately $1.7 billion by offering shares at HK$48.56 each, which is near the midpoint of its targeted range of HK$47.60 to HK$49.50.

This valuation represents a significant decline from Shein's peak of nearly $100 billion in private markets in 2022 and is also below its $66 billion valuation from a funding round earlier this year. The IPO is expected to officially launch trading on the Hong Kong Stock Exchange on September 1, 2026, under the ticker 0625.HK.

Shein's decision to pursue an IPO in Hong Kong comes after unsuccessful attempts to list in New York and London, primarily due to political and regulatory challenges surrounding its supply chain practices. The company has faced scrutiny over allegations related to forced labor in its supply chain, particularly concerning cotton production in Xinjiang, China.

In light of recent financial pressures, including a reported net loss of $99 million in Q1 2026, Shein aims to use about 80% of the IPO proceeds to enhance its technology and expand its global reach. The company is also planning to pay up to $3.5 billion to some investors from earlier funding rounds. Despite a fully covered order book, retail demand has been less robust, indicating potential challenges ahead.

Goldman Sachs, Morgan Stanley, and JPMorgan are acting as joint sponsors for the IPO, which is expected to attract cornerstone commitments from existing shareholders such as Boyu Capital and Tiger Global.