Fast-fashion giant Shein targets $27bn valuation ahead of Hong Kong listing
Shein will begin trading on the Hong Kong stock exchange on 1 September, aiming to raise up to $1.77bn and reach a valuation of nearly $27bn — about 70% below its private-market peak four years ago.
Online fast-fashion retailer Shein, founded in China and now headquartered in Singapore, will make its long-awaited stock market debut in Hong Kong on 1 September, after securing regulatory approval from Beijing last month.
The company is offering 280 million shares priced between HK$47.60 and HK$49.50 each, seeking to raise as much as HK$13.86bn (about $1.77bn). At the top end of that range, Shein would be valued at close to $27bn. The final offer price is due to be announced on 31 August.
A steep drop from its peak
Four years ago, Shein's valuation in private markets approached $100bn. The roughly 70% decline reflects growing scrutiny of the company's slowing growth, rising costs and shifting market conditions. Proceeds from the listing are intended to fund technology development and expand the company's international footprint.
Earlier plans to list in New York or London stalled amid regulatory obstacles. Shein relocated its headquarters to Singapore between 2021 and 2022, a move analysts believe was designed to reduce scrutiny faced by Chinese companies abroad. The company nonetheless continues to rely on China's low-cost textile manufacturing base and advanced e-commerce logistics network.
Criticism over labour and products
Known for selling low-priced clothing in roughly 160 countries, Shein had grown its European monthly user base to 156 million by the end of last year, ranking it among the continent's largest e-commerce platforms. In November, the company opened its first physical retail space, inside the BHV department store in Paris, where its launch drew both large crowds of shoppers and protesters criticising labour conditions at its suppliers and the environmental impact of its business model.
Shein has faced other controversies in France, including the discovery of childlike sex dolls sold on its platform, and has been fined repeatedly over issues including product traceability, environmental labelling and delivery times, with total French fines exceeding 210 million euros. Italy has also fined the company over alleged misleading environmental claims.
