Shein seeks up to US$1.8 billion in long-awaited Hong Kong IPO

Shein, the fast fashion giant, is gearing up for its long-awaited Hong Kong initial public offering, aiming to raise up to US$1.8 billion. The company is offering 280 million shares priced between HK$47.6 and HK$49.5 each, with its Hong Kong debut scheduled for September 1. Founded in mainland China but now headquartered in Singapore, Shein has been in the process of going public for several years, initially aiming for listings in the US and London but facing scrutiny and tensions between China and the US.

After a year of waiting for Beijing's approval, Shein is now set to enter the stock market amidst challenges such as tariffs, competition from PDD Holdings’ Temu, and regulatory pressure. Its valuation has declined due to these factors, with the IPO prospectus revealing a shift to a US$99 million loss in the first quarter of 2026 from a US$395 million profit the previous year, alongside declining revenue.

Despite being perceived as a Chinese company, Shein relocated its headquarters to Singapore in 2021 but had to adjust its plans due to Chinese regulatory hurdles. The company plans to utilize IPO proceeds to bolster technology, invest in marketing, improve supply chain governance, and advance its sustainability efforts. Major investors include IDG Capital, Mubadala Investment, Coatue Management, HSG, Goldman Sachs, Morgan Stanley, and JPMorgan Chase.