Fast-fashion giant Shein aims for $27bn valuation in Hong Kong market debut

Fast-fashion retailer Shein aims to list on the Hong Kong stock exchange with a valuation of approximately $27 billion, according to a statement made on Monday. The company will debut on September 1st, raising up to HK$13.86 billion ($1.77 billion) through its initial public offering. Shein, founded in China and headquartered in Singapore, had previously secured Beijing's approval for its Hong Kong IPO.

The company's valuation has plummeted by nearly 70% from its near $100 billion peak four years ago due to growing concerns over its environmental footprint. Shein plans to use the funds raised from the IPO to invest in its technological capabilities and expand its international presence. The company currently sells clothes to customers in about 160 countries, with a marked decline in valuation following questions over slowing growth, rising costs, and changing market conditions.

Shein's headquarters were moved to Singapore between 2021 and 2022 to avoid regulatory hurdles, a decision which analysts believe helped the firm sidestep increasing global scrutiny. Despite operating from Singapore, the company still leverages China's vast textile manufacturing sector and sophisticated e-commerce logistics network.

In November, Shein opened its first physical outlet in Paris, drawing both customers and protesters to the BHV department store. The company insists it complies with strict supplier standards and rejects allegations of inhumane working conditions or environmental harm. Shein has also faced criticism in France for selling sex dolls, with authorities imposing fines and Shein promising to cooperate and ban such items from its platform.