Shein targets £20bn valuation in Hong Kong IPO

Shein could be valued at up to $27 billion (£19.8 billion) when it makes its long-awaited stock market debut in Hong Kong, which trading experts believe to be 1 September.  

The Singapore-headquartered fast fashion retailer is offering almost 280 million Class B shares at between HK$47.60 and HK$49.50 each, according to its Hong Kong Stock Exchange filing published on Monday. 

At the top of the range, the IPO would raise HK$13.86 billion, or about $1.77 billion (£1.29 billion), giving it a market valuation of $26.8bn (£19.8bn). The final offer price is due to be announced by 11pm on 31 August, with trading expected to begin the following day. 

Shein shared in the stock market filings that it plans to use the proceeds to strengthen its technology and support international expansion, with around 90% of the shares to be available to overseas investors.

Goldman Sachs and Morgan Stanley are among the investment banks backing the listing, while cornerstone investors are expected to purchase $383 million of shares.

Valuation falls from 2022 peak

Its proposed valuation is thought to be around 70% less than originally hoped for by the group, which was reportedly worth more than $100 billion (£73.3 billion) at its peak following a private fundraising in 2022. It was valued at approximately $66 billion in 2023 and had reportedly sought between $30 billion and $40 billion earlier this month.

The online retail giant has been planning to float since 2023, with previous attempts to list in New York and London failing after political and regulatory scrutiny.

Shein secured approval from Chinese regulators for the Hong Kong listing in July.

Import changes pressure Shein’s model

Shein recently revealed it slumped to a $99 million (£73 million) bottom line loss in the first quarter of 2026 and saw sales hit by US president Donald Trump’s move to scrap an import duty exemption on small packages.

In May last year, the US removed a so-called “de minimis” tariff exemption on small packages, which Shein had previously used to ship garments from China directly to customers.

Earlier this month, the EU also made the same move by imposing a three euro (£2.56) duty on small parcels imported from outside the trading bloc.

About one-third of Shein’s sales came from Europe last year, and the company is considering price increases in both the US and EU to offset higher duties.

The UK is also planning to close the small parcels loophole, but not until October 2028.

Dan Coatsworth, head of markets at AJ Bell, said Shein’s IPO comes as it faces pressure from a number of angles, including the scrapping of the small packages exemption, increased competition from Chinese rival Temu and changing consumer demand.

He said: “Consumer tastes are shifting, with younger people becoming more environmentally conscious.

“Certain individuals no longer want to buy a cheap dress or top and throw it away after one wear.

“Instead, there is growing interest in second-hand clothing, hence why the likes of Vinted are thriving and Shein is finding life tough going.

“All this means that Shein is having to work faster and harder, which is not the kind of narrative a company needs when it is trying to win over new investors.