Fast-fashion company Shein announced plans on Monday to raise up to $1.77 billion (HK$13.86bn) through an initial public offering (IPO) on the Hong Kong stock market. The company filed documents stating it will offer nearly 280 million shares at a price range between HK$47.60 and HK$49.50. Trading is scheduled to begin on September 1.
The proposed valuation of nearly $27 billion is lower than the $100 billion valuation the company reached during a private fundraising round in 2022. This shift follows Shein's previous unsuccessful attempts to list on stock exchanges in the United States and London. The company cited regulatory challenges and scrutiny of its operations as factors in those earlier attempts.
Financial reports released by the company indicate a quarterly loss of $99 million in the first three months of this year, a decrease from a net income of $395 million during the same period last year. Shein attributed this loss to slowing sales following the removal of a U.S. import duty exemption on small packages. The company also noted a $328 million paper loss due to accounting changes for special investor shares.
The IPO involves significant participation from major financial institutions, including Goldman Sachs, Morgan Stanley, and JP Morgan. The scale of the valuation—dropping by roughly $73 billion from its 2022 peak—reflects broader market shifts and the impact of international trade policy. The removal of U.S. duty exemptions, for instance, has directly altered the company's profitability. Furthermore, the company continues to face scrutiny regarding its environmental impact and supply chain practices, including allegations of forced labor. Shein has stated it maintains a "zero tolerance for forced labor" policy.
The move to the Hong Kong exchange sets a precedent for how large e-commerce firms with Chinese origins navigate international regulatory environments after facing hurdles in Western markets. The success or failure of this $27 billion debut will serve as a marker for investor appetite for fast-fashion business models under increased regulatory and ethical scrutiny. Following the start of trading on September 1, the market will determine if the company can stabilize its finances amid ongoing U.S.-China tariff tensions and fluctuating global demand.