Shein shares fall after its $26bn Hong Kong IPO
Shein shares fell after the fast-fashion retailer completed its long-awaited IPO in Hong Kong at less than one-third of its 2022 valuation.
Shares in the Singapore-headquartered company dropped as much as 10% in early trading on Tuesday before recovering some ground, with shares remaining around 4% below their offer price at HK$46.36 (£4.37).
Shein priced the IPO at HK$48.56 (£4.58) per share, giving the business a market value of more than $26 billion (£19.4 billion). The company sold almost 280 million Class B shares, generating gross proceeds of approximately HK$13.6 billion (£1.28 billion).
The final price was below the HK$49.50 upper end of the range set out in its initial Hong Kong Stock Exchange filing.
Shein had previously shared that it planned to use the proceeds of its IPO to strengthen its technology and support international expansion.
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 (£48.7 billion) in 2023, although earlier this month Shein had reportedly sought between $30 billion and $40 billion.
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. It then secured approval from Chinese regulators for the Hong Kong listing in July.
The lower valuation follows a deterioration in profitability. Revenue increased 8% to $41.85 billion (£31 billion) in 2025, but net income fell from $3.37 billion to $2.06 billion.
Shein reported first-quarter 2026 revenue of $9.05 billion, up 1.1%, while swinging from a $395 million profit to a $99 million (£73 million) loss, as it 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. The UK is also planning to close the small parcels loophole, but not until October 2028.
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.
Dan Coatsworth, Head of Markets at AJ Bell, previously commented that Shein’s IPO coincided with the retailer facing 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."
