Shein launches Hong Kong IPO at $27 billion valuation
Shein Global Holdings Limited launched its global offering on Monday, selling approximately 280 million Class B shares at between HK$47.60 and HK$49.50 per share, valuing the company at close to $27 billion at the top of that range.
According to the prospectus, the total proceeds from the offering could reach HK$13.86 billion, equivalent to approximately $1.77 billion. The final price is expected to be announced August 31, with trading on the Hong Kong Stock Exchange set to begin September 1 under the stock code 00625.
The $27 billion valuation represents a decline of roughly 70% from the $98.2 billion private-market valuation Shein carried in 2022, and less than half the $64 billion figure investors assigned to the company in 2023 and April 2024, according to CNBC .
A group of cornerstone investors, among them current Shein backers Boyu Capital, Tiger Global, and General Atlantic, committed to purchasing roughly $383 million in shares, according to Reuters . Tencent, Greenwoods, Taikang Life, and UBS Asset Management will also take stock. The company intends to direct approximately 80% of what it raises toward technology upgrades and broadening its international brand footprint.
The company's compressed valuation reflects a deteriorating financial trajectory. The company reported that revenue growth fell to 8% in 2025, down from 20.7% the prior year, before slowing even further to 1.1% in the first quarter of 2026. Shein posted a $99 million net loss in that quarter, reversing a $395 million profit from the same period a year earlier, after the U.S. eliminated a duty exemption on small packages from China. U.S. revenue fell 14.3% in the most recent first quarter compared with a year earlier.
Each share sold through the IPO comes with voting power equal to just a tenth of that attached to founder-held shares. The four co-founders, Sky Yangtian Xu, Maggie Gu, Molly Miao, and Tony Ren, will collectively hold 90% of the company's voting power, the prospectus showed.
Shein had been targeting a valuation in the $26 billion to $27 billion range, a retreat from the $30 billion to $40 billion range it pursued at the start of investor meetings earlier this month. The company received approval from China's securities regulator for the Hong Kong listing in early July, after earlier attempts to list in New York and London did not proceed.
Among the risks disclosed in the prospectus, Shein said it faces a "significantly higher level of duties and taxes" in the United States, an ongoing Federal Trade Commission investigation, and separate regulatory proceedings in Europe. The company said it has set aside about $80 million for legal and regulatory matters.
The listing marks the biggest new share issuance on the Hong Kong exchange so far this year, topping the $751 million raised by autonomous driving company Momenta Global in July.
