Shein sets September 1 Hong Kong debut at up to US$27b valuation

Shein, the fast-fashion giant, is set to debut on the Hong Kong stock exchange on September 1, according to a recent filing with the exchange. The company projects the listing will value the group at nearly US$27 billion, with an anticipated share offering of 280 million shares at a price between HK$47.60 and HK$49.50, raising up to HK$13.86 billion (US$1.7 billion). The final price will be revealed on August 31, but the higher estimate would place Shein's valuation at approximately US$26.8 billion.

Founded in China and now based in Singapore, Shein navigated Beijing's approval process to launch its initial public offering (IPO) in Hong Kong. The platform, which once faced regulatory hurdles for listings in New York and London, distinguishes itself from competitors through swift product design and an efficient production and supply chain. Its extensive product range at low prices has positioned Shein alongside industry behemoth Amazon in the United States.

The funds raised from the IPO will be allocated to bolster Shein's technological capabilities and expand its global footprint. Notably, the company reported a full-year net profit of US$2.06 billion in 2025, but experienced a US$99 million quarterly loss due to the United States repealing an import duty exemption on small packages. In a strategic move to avoid increasing global scrutiny of Chinese firms, Shein relocated its headquarters from China to Singapore between 2021 and 2022.

Despite the move, Shein continues to leverage China's robust textile manufacturing sector and sophisticated e-commerce logistics network. The company employs a system to rank suppliers based on their flexibility and ability to fulfill urgent orders, regularly eliminating the least efficient performers. As of the end of last year, Shein boasted 156 million average monthly users in Europe, solidifying its status as one of the continent's leading e-commerce platforms alongside AliExpress and Amazon.

However, Shein has faced criticism regarding its environmental impact and allegations of human rights violations. Despite executive chairman statements emphasizing zero tolerance for forced labor, the company encountered backlash in France in 2023 over the discovery of childlike sex dolls on its platform, leading to fines exceeding 22 million euros from French authorities.

Fines totaling over 210 million euros in France and allegations of misleading environmental claims in Italy further underscore scrutiny over Shein's operations.