Shein Targets $27 bn Valuation in Hong Kong IPO

Fast‑fashion retailer Shein announced on Monday it will offer roughly 280 million shares in a Hong Kong stock‑market debut that could value the company at nearly $27 bn, a dramatic decline from the $100 bn valuation reached in a 2022 private‑funding round.

The shares will be priced between HK$47.60 ($6.09) and HK$49.50 ($6.30), giving investors a potential return of up to 18% on the first trading day. The lower valuation reflects weaker September sales growth and rising costs, as well as heightened scrutiny over the company’s supply‑chain practices.

Shein’s listing is supported by major Wall Street banks, including Goldman Sachs, Morgan Stanley and JP Morgan. The company’s return to public markets follows failures to list in the United States and London, where regulatory obstacles and concerns about forced labour allegations were significant barriers.

In July, Shein posted a quarterly loss of $99 m for the first quarter, a swing from a $395 m profit a year earlier. That downturn follows the removal of an import‑duty exemption that had previously benefited the retailer’s small‑package shipments to the United Kingdom.

Despite these challenges, Shein remains a dominant online retailer, with operations in more than 150 countries and a chain of cheap, trend‑fast clothing produced by a vast network of Chinese factories. The company claims a “zero tolerance for forced labour” but continues to face calls for greater transparency in its supply chains as investors weigh the ethical implications of its rapid growth model.