Shein Global Holdings Ltd. is preparing for its highly anticipated initial public offering (IPO) in Hong Kong, aiming to raise as much as HK$13.9 billion ($1.8 billion). The fast-fashion retailer is offering 280 million shares at a price range of HK$47.6 to HK$49.5 each. This pricing would result in a market capitalization between approximately $25.7 billion and $26.8 billion upon its debut on September 1.
This valuation marks a substantial decrease from its private market peak of nearly $100 billion in 2022 and is also below its $66 billion valuation from a 2023 fundraising round. The discounted valuation is attributed to factors such as slower revenue growth, weaker earnings, shrinking margins, and increased competition. For instance, Shein's net income fell 39% to approximately $2.06 billion in 2025, despite an 8% increase in sales to $41.9 billion.
Despite the fully covered IPO order book, demand from retail investors has been less enthusiastic. Analysts like Alvin Cheung of Prudential Brokerage noted that enthusiasm for new listings in Hong Kong has weakened, and investors are questioning Shein's growth prospects amid rising costs and intensified competition from rivals like Temu and Amazon Haul. The IPO proceeds of about $1.7 billion are largely offset by planned payouts of up to $3.5 billion in cash and additional shares to existing investors due to anti-dilution protections triggered by the lower IPO valuation.
