Shein announced pricing details on August 24 ahead of its planned September 1 IPO on the Hong Kong stock exchange. The company will offer about 280 million shares priced between HK$47.60 and HK$49.50 each, targeting to raise roughly HK$13.86 billion (US$1.77-$1.8 billion) [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11].

At the top of this range, the IPO values Shein close to US$27 billion. This represents a steep drop of around 70% from the company’s near US$100 billion private valuation peak in 2022 [1, 2, 3, 4, 5, 8, 9, 10, 11]. In 2023 and early 2024 private funding rounds, Shein’s valuation had been about US$64 billion, reflecting a steady decline ahead of the IPO [3, 8, 9, 10].

Shein’s losses and market pressures have weighed on its value. The company posted a US$99 million loss in Q1 2026 compared with a US$395 million profit a year earlier amid slower sales growth and rising costs including tariffs [1, 3, 6, 7]. Investor concerns center on slowing growth, higher costs, regulatory challenges, and tariff impact on profit margins [1, 8, 9, 10]. As Winston Ma, adjunct professor at NYU School of Law, noted, "Public investors are no longer paying for hyper-growth. They are underwriting a mature cross-border platform that must now defend its profit margins against trade tariffs, higher compliance costs, and regulatory scrutiny in both the US and China" [8].

Shein’s IPO comes after failed attempts to list in the US and London amid US-China geopolitical tensions and regulatory scrutiny. The company relocated its headquarters from China to Singapore in 2021-2022 to reduce regulatory risk [1, 3, 4, 6, 7, 11].

The company’s business model focuses on ultra-cheap fast fashion mainly supplied by Chinese factories, selling to customers in over 150 countries [1, 4, 11]. It faces criticism over environmental impact and labor practices in its supply chain [1, 4, 11].

Shein is backed by cornerstone investors including Boyu Capital, Tiger Global, General Atlantic, Tencent Holdings, and UBS Asset Management Singapore with combined commitments around US$383 million [3, 5, 8, 9]. Due to the sharp valuation drop, Shein will pay up to US$3.5 billion to select pre-IPO investors in cash and additional shares as compensation [12].

Proceeds from the IPO will be used to invest in technology such as inventory management, marketing to boost global brand image, and improving supply chain governance [3, 6, 7, 11]. Shaun Rein, managing director at China Market Research Group, said investors and consumers "are no longer excited by the ultra-fast fashion retailer as they once were" [10].

Shein plans to finalize its IPO share price on August 31 before shares start trading on the Hong Kong exchange on September 1 [1, 4, 8, 9, 10, 11].