Shein Targets US$1.76 Billion in Hong Kong IPO, Valued at US$27 Billion
SCMP · 2 SOURCESabout 2 hours ago2 MIN
Summary
Fast-fashion retailer Shein Global Holdings is seeking to raise as much as HK$13.85 billion (US$1.76 billion) in its Hong Kong initial public offering, marking a long-awaited return to public markets after shelving plans to list in the United States and London . The company will sell 279 million shares priced between HK$47.60 and HK$49.50, with trading expected to commence on September 1, 2025 . The IPO would value Shein at over US$27 billion, representing a steep decline from its nearly US$100 billion valuation during a 2022 funding round .
Key Points
- Shein will offer 279 million shares at HK$47.60 to HK$49.50 each, targeting up to US$1.76 billion in its Hong Kong IPO
- The company reported a quarterly loss of US$99 million in Q1 2025, compared with net income of US$395 million a year earlier
- Revenue growth nearly stalled in Q1, rising only 1.1 percent year on year as US tariff exemptions on small packages were removed
- Cornerstone investors include Goldman Sachs, Morgan Stanley, JP Morgan, Tencent Holdings, Boyu Capital, Tiger Global, General Atlantic, UBS and others
- The company faces ongoing uncertainty from US-China tariff tensions, which have paused but remain unresolved
- Shein will issue additional shares to pre-IPO investors if its final valuation falls below pre-agreed thresholds
- Peer valuations for competitors Inditex (Zara's parent) and H&M have rebounded significantly since last year
Why It Matters
Shein's Hong Kong listing serves as a critical test of investor appetite for Chinese-founded companies amid heightened US-China tensions and regulatory concerns over supply chain practices . The IPO's success or failure will signal whether global capital markets are willing to support fast-fashion firms facing tariff headwinds, slowing growth and intense competition from rivals including PDD Holdings' Temu platform .
Shein's Hong Kong listing serves as a critical test of investor appetite for Chinese-founded companies amid heightened US-China tensions and regulatory concerns over supply chain practices . The IPO's success or failure will signal whether global capital markets are willing to support fast-fashion firms facing tariff headwinds, slowing growth and intense competition from rivals including PDD Holdings' Temu platform .