Shein set to take orders for Hong Kong IPO next week, eyeing US$35b valuation: sources

Fast-fashion company Shein Global Holdings is set to begin taking orders for its Hong Kong initial public offering (IPO) next week, with the goal of achieving a valuation of US$35 billion, according to sources. The Singapore-based firm, originating from China, intends to raise up to US$2.8 billion through the deal. Investigation into investor interest commenced last week, with the process expected to conclude by the end of the month, according to one source.

While the final details may still undergo changes, Shein aims to secure a valuation of at least US$30 billion, as the management is committed to achieving its target of US$35 billion. This move marks a significant rebound from Shein's lofty expectations of a US$100 billion valuation in 2022 and a retreat from earlier private sector targets of US$40 billion to US$50 billion.

Prior to contemplating a public listing, Shein had aspired to trade shares in either New York or London. However, these plans were hindered by rigorous regulatory scrutiny in the United States and Europe regarding the company's supply chain practices and tax strategies. In the fiscal year 2025, Shein reported revenues surpassing US$40 billion and a net profit of almost US$2 billion.

Nevertheless, the company disclosed in its prospectus that an upcoming European Union regulation imposing additional charges on low-value imports could potentially impede its growth for the year. The EU started levying a €3 (US$3.40) fee for each parcel valued under €150 shipped from outside the bloc in the previous month, an action that impacts prominent online shopping platforms such as Shein and Temu.

A similar fee was implemented by the US last year for goods valued at US$800 or below. Shein's joint sponsors for the Hong Kong IPO are Goldman Sachs, Morgan Stanley, and JPMorgan. Additionally, Haitong International and UBS serve as overall coordinators for the transaction.