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

Fast-fashion giant Shein Global Holdings is set to commence investor orders for its Hong Kong initial public offering (IPO) in the coming week, with the goal of achieving a US$35 billion valuation, according to sources familiar with the situation. The company, headquartered in Singapore and originally founded in China, plans to raise up to US$2.8 billion through the offering, which began gauging investor demand last week, the sources noted.

While the final deal size and timing may yet be subject to change, the company aims to finalize the process by the end of the month, according to one source.

Shein aims to maintain a valuation of at least US$30 billion, with executives working diligently to hit their target of US$35 billion, according to another source. This valuation would represent a significant drop from the company's peak expected valuation of US$100 billion in 2022, as well as a decline from earlier private targets of US$40 billion to US$50 billion.

Prior to pursuing a Hong Kong IPO, Shein had considered listings in New York or London, as reported by the South China Morning Post and other outlets. However, these plans were disrupted by heavy regulatory scrutiny in the US and Europe, particularly concerning the company's supply chain practices and tax structures. Despite generating over US$40 billion in revenue in 2025 and a net profit of nearly US$2 billion, Shein disclosed in its listing prospectus that a new EU rule imposing additional fees on low-value imports could hinder growth this year.

The company reported a US$99 million loss in the three months leading up to March, marking a stark contrast to a US$395 million profit in the same period the previous year.

The Hong Kong IPO will be overseen by Goldman Sachs, Morgan Stanley, and JPMorgan as joint sponsors, with Haitong International and UBS acting as overall coordinators. Shein has yet to respond to requests for comment.