Shein Sets Sights on $27 bn Value in Hong Kong IPO

Fast‑fashion titan Shein announced on Monday that it will offer roughly 280 million shares priced between HK$47.60 and HK$49.50, targeting a capital raise of HK$13.86bn (£1.3bn; $1.77bn). At the top of that price range the company would be valued at almost $27bn – a far cry from the $100bn valuation it secured in a private funding round in 2022. The difference reflects weaker sales growth and higher costs in the last year.

The move follows previous failed attempts to list in the United States and London, where regulatory hurdles – largely tied to scrutiny of Shein’s supply‑chain practices – stalled the process. The Hong Kong IPO is backed by investment giants Goldman Sachs, Morgan Stanley and JP Morgan.

In July Shein reported a quarterly loss of $99 million after U.S. President Donald Trump lifted an import‑duties exemption on small packages, curbing sales growth. The company also faces ongoing uncertainty over the paused U.S.–China tariff war.

Founded in 2008, Shein has grown into one of the world’s largest fast‑fashion retailers, serving customers in more than 150 countries through a vast network of Chinese factories that can churn out new styles quickly. Its revenue stream has outpaced rivals such as H&M and Zara.

However, the firm’s business model has drawn criticism for its environmental impact and allegations of forced labour across its supply chain. Despite these accusations, Shein has repeatedly asserted a 'zero tolerance for forced labour' policy.

The Hong Kong debut marks a significant milestone for Shein’s quest to establish itself on the global stage, while keeping future‑focused investors wary about the challenges that come with rapid growth, regulatory scrutiny and supply‑chain ethics.