Shein sets Hong Kong IPO, seeking valuation of near $27 billion

Shein, the fast-fashion retailer, is set to debut on the Hong Kong stock exchange on September 1, according to the company's announcement on Monday. The listing aims to value the group at nearly $27 billion. The online retailer plans to offer 280 million shares at a price ranging from HK$47.60 to HK$49.50, potentially raising up to HK$13.86 billion (US$1.7 billion). The final price will be revealed on August 31, but a valuation of around $26.8 billion would be achieved if the higher figure is accepted.

Founded in China and headquartered in Singapore, Shein recently received Beijing's approval to make its initial public offering in Hong Kong. Previous plans to list in New York and London were delayed due to regulatory hurdles. With most of its factories situated in China, Shein distinguishes itself from competitors through its rapid product design and highly efficient production and supply chain. The company's extensive product range at affordable prices has positioned it alongside Amazon in the United States.

Shein intends to utilize the funds from the market listing to enhance its technological capabilities and expand its international presence. In 2025, the firm reported a full-year net profit of $2.06 billion, but switched to a $99 million quarterly loss due to the United States rescinding an import duty exemption for small packages.

Moving its headquarters to Singapore between 2021 and 2022, Shein aimed to evade increasing global scrutiny of Chinese firms. However, it still benefits from China's combination of a large textile manufacturing sector and a sophisticated e-commerce logistics network. The company ranks suppliers based on their flexibility and ability to handle urgent orders, regularly removing the least efficient ones.

As of the end of last year, Shein's European customer base grew to 156 million average monthly users, making it one of the continent's leading e-commerce platforms, alongside China's AliExpress and Amazon.

Despite scrutiny over its environmental impact and allegations of human rights violations, Shein's executive chairman stated that the company holds "zero tolerance" for forced labor. The retailer also faced criticism in France for the discovery of childlike sex dolls on its platform, resulting in two fines totaling over 22 million euros ($25.1 million) from French authorities in June.

Shein has paid more than 210 million euros in various French fines over the years, and Italy has imposed fines for alleged misleading environmental claims.