Shein, the major Chinese fast-fashion company, is attempting its third stock market listing with an IPO valuation target of 26 to 27 billion U.S. dollars, aiming to enter the Hong Kong market as early as the end of August.
According to Bloomberg, Shein aims to raise about 2 billion U.S. dollars through its Hong Kong IPO. Previously, Shein had targeted a company valuation of 30 billion U.S. dollars but faced investor pressure that forced a reduction in its target. Additionally, there is a possibility that existing investors may purchase up to half of the IPO shares.
Current investors supporting Shein include IDG Capital, Mubadala Investment Co., Coatue Management, and HSG.
Bloomberg also reported that Shein is considering a hybrid approach combining cash payments and free additional shares for certain investors who participated in recent fundraising rounds to help reduce their costs or financial burdens.
Goldman Sachs, Morgan Stanley, and JPMorgan Chase will serve as the lead underwriters and advisors for Shein's Hong Kong IPO.
Shein was founded in China in 2008 and relocated its headquarters to Singapore at the end of 2021. It expanded globally using a strategy of selling inexpensive fashion products and operating distribution centers worldwide to reduce shipping costs.
If successful, this IPO will conclude Shein's long saga of trying to go public across multiple markets. Previously, Shein failed to list on the New York Stock Exchange between 2020 and 2023 and was again disappointed in the London market in 2024.
In 2022, Shein was valued as high as 100 billion U.S. dollars. However, after the removal of tariff exemptions by Donald Trump, intensified competition from Temu—a major Chinese online fashion rival—and the impact of the Middle East conflict raising product and shipping costs, Shein's profits declined continuously.
In the first quarter of this year, Shein reported a loss of 99 million U.S. dollars, compared to a full-year profit of 395 million U.S. dollars in 2025. The company stated that future revenues will face significant challenges, especially with new European Union regulations introducing fees on parcels valued under 150 euros (approximately 173.93 U.S. dollars), directly affecting Shein's large European customer base.
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Source:Bloomberg
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