Shein’s valuation shrinks 70% to US$27 billion in Hong Kong IPO

Fast-fashion company Shein, valued at roughly $27 billion in its Hong Kong IPO, is trading at a valuation 70% lower than its previous private-market peak of $100 billion. The Chinese-founded, Singapore-headquartered retailer is offering 280 million shares priced between HK$47.60 and HK$49.50 each, potentially raising up to HK$13.86 billion ($1.77 billion). With shares set to begin trading on September 1, Shein's final offer price is expected to be announced on August 31.

Public investors are now assessing Shein as a mature global platform facing challenges on margins, tariffs, and compliance costs, rather than investing solely in expectations of hypergrowth. The company's financial outlook has shown signs of strain, with first-half 2026 revenue growth expected to remain steady, while operating margins are anticipated to decline slightly.

Founded by Chris Xu, also known as Sky Xu or Xu Yangtian, Shein remains under his control, along with a group of institutional investors. Xu and co-founders Maggie Gu, Molly Miao, and Tony Ren retain about 90% of Shein's voting rights, while public investors receive shares with one-tenth the voting power. Major investors in the IPO include Tiger Global Management, General Atlantic, JAFCO Asia, IDG Capital, and Sequoia Capital China, now known as HongShan. Other institutional investors include Boyu Capital and Tencent.

Shein's IPO is Hong Kong's largest new share sale of 2026, surpassing Momenta Global's $751 million offering in July. The company plans to use around 80% of the proceeds to bolster technology and expand its brand and global presence. Existing investors have committed about $383 million to the offering. The listing also adds another major international consumer brand to Hong Kong's exchange, which has seen strong activity in new listings this year, raising about $41 billion so far.