Shein Eyes $27bn Valuation in Hong Kong IPO Debut
Fast‑fashion giant Shein will list on the Hong Kong Stock Exchange tomorrow, offering between HK$47.60 ($6.07) and HK$49.50 ($6.29) per share. At the upper end the deal would raise $1.77 bn and value the company at approximately $26.8 bn.
The list follows failed attempts to go public in the US and London after regulatory review bodies raised concerns about the firm’s supply‑chain practices. Shein is headquartered in Singapore but was founded in China and operates in more than 150 countries.
Its valuation has fallen from the $100 bn peak in 2022 as sales growth slows and costs rise. The company’s annual report noted a $99m loss in the first quarter, a sharp reversal of the $395m profit seen a year earlier, largely due to higher commercial duties and a pause in the US de‑minimis exemption.
Shein’s IPO is backed by Wall Street heavyweight banks, including Goldman Sachs, Morgan Stanley and JP Morgan. Its debut on the Hong Kong market – a city seen as a resilient venue for Chinese‑led listings – could give the company a higher valuation than it might have achieved in London.
The listing will test investor confidence in fast‑fashion and highlight the costs of operating at scale. Critics point to rising freight charges, potential de‑minimis duties in the EU, and accusations of forced labour in by‑story factories.
As of the end of March 2026, the company had 281 million active users who placed more than one billion orders, yet its supply chain has faced scrutiny. The firm claims a zero‑tolerance stance on forced labour, but watchdogs remain skeptical.
With inventory flow driven by an extensive network of Chinese factories capable of rapid production, regulatory costs and international trade tensions pose new risks. The Hong Kong market will watch closely how Shein balances rapid growth with tighter scrutiny.
