Shein aims for almost $27bn valuation on 1 September debut

Fast‑fashion giant Shein set a target to raise up to HK$13.86bn (about $1.77bn) when its shares start trading on the Hong Kong Stock Exchange on 1 September. In a filing released on Monday, the company said it will offer nearly 280 million shares at a price between HK$47.60 and HK$49.50.

At the upper end of the range, the IPO would value Shein at almost $27bn, a sharp drop from the $100bn valuation it achieved in a 2022 private funding round. Analysts say the lower figure reflects weaker sales growth and rising costs.

The debut follows failed attempts to list in the U.S. and London, where regulatory scrutiny over supply‑chain practices and alleged forced labour concerns stalled earlier efforts. Shein’s headquarters in Singapore and origins in China add to the complexity of its international expansion.

The offering is being backed by Wall Street giants Goldman Sachs, Morgan Stanley and JP Morgan, bringing senior advisory support from established financial institutions.

In July, Shein reported a quarterly loss after U.S. President Donald Trump removed an import‑duty exemption on small packages, which had helped keep shipping costs low. The Chinese retailer lost $99m in the first three months of 2026 compared with a net income of $395m a year earlier.

Alongside the top‑line slump, uncertainty remains over the paused U.S.–China tariff back‑and‑forth that has plagued the industry. However, Shein’s business model—rapid design and production from a vast network of Chinese factories—continues to push its revenue beyond that of competitors such as H&M and Zara.

The company has repeatedly stated it has a “zero tolerance” for forced labour, though critics say more transparency is needed to validate that claim. Recent scrutiny and the failure of its London listing attempt underline the need for robust supply‑chain governance as consumer awareness of sustainability rises.