Shein valued at $33.5 billion in Hong Kong market debut
But the valuation is well below what it commanded during private fund-raising rounds in 2022.
Fast-fashion giant Shein made its market debut in Hong Kong, raising US$1.7 billion in its initial public offering (IPO) and valuing the company at approximately US$26.3 billion. The Chinese-founded e-commerce behemoth's stock sale in Hong Kong comes after IPO plans in New York and London were halted due to regulatory concerns. Shein offered 280 million shares at HK$48.56 each, below the maximum offer price of HK$49.50.
The platform gained immense popularity during the Covid-19 pandemic by appealing to young customers through social media, but now faces challenges such as slowing growth and increasing regulatory pressure in Europe and the United States, its largest markets.
During private fundraising rounds in 2022, Shein commanded a valuation of US$98.2 billion, which is significantly higher than its current valuation in the IPO. The company has faced scrutiny over its environmental footprint and allegations of human rights violations, as well as growing competition from Chinese low-cost retailers like Temu and AliExpress. Shein's executive chairman, Donald Tang, stated that the company has "zero tolerance" for forced labor.
The company plans to use the funds raised from the IPO to upgrade its technological capabilities and expand its international presence. Shein went public in Hong Kong on September 1, 2025. In 2025, Shein reported a full-year net profit of US$2.06 billion but experienced a US$99 million quarterly loss as the United States scrapped an import duty exemption on small packages. The European Union imposed a duty of €3 per item for packages valued at less than €150 in July.
Lorraine Tan, Morningstar's Asia director of equity research, noted that the decline in Shein's market perception reflects slower revenue growth due to geopolitical challenges and increased competition. While sales in Asia help offset a fall in US revenue, the company is likely to experience single-digit revenue growth, and this maturing outlook may limit investor excitement. Additionally, tariff and other geopolitical risks remain a concern.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Shein prices Hong Kong IPO at midpoint of range, raises $1.74 billion channelnewsasia.com
