Shein is preparing to make its stock market debut in Hong Kong at a valuation of up to $27bn, in a flotation that will put a significantly lower price on the fast fashion group than investors assigned to it at the height of its private-market boom.
The online retailer, which built its business on ultra-low-cost clothing shipped directly to consumers, is expected to begin trading on Tuesday. Investors will learn the company’s final valuation as its shares start trading on the Hong Kong exchange.
Shein said in a listing document last week that it would seek a valuation of between HK$202bn ($26bn) and HK$210bn ($27bn).
Reuters reported that people close to the company expected the valuation to settle around the middle of that range.
Even at the upper end, the flotation would represent a substantial reduction from Shein’s previous private-market valuation. The group was reportedly valued at more than $100bn following a fundraising round in 2022, before its ambitions were hit by heightened political and regulatory scrutiny.
Shein had initially been targeting a valuation of about $30bn for the Hong Kong offering.
The company has been seeking a public listing since 2023. Earlier attempts to float in New York and London failed to gain sufficient momentum amid scrutiny over the group’s supply chain, corporate structure and regulatory exposure.
Under the terms of the Hong Kong offering, Shein will sell 280mn shares at between HK$47.60 ($6.08) and HK$49.50 ($6.32), according to its listing notice.
The flotation is expected to raise as much as HK$14bn ($1.8bn) for the company, with Shein retaining the option to issue a further 42mn shares.
About 90 per cent of the shares will be available to overseas investors, according to the filing, potentially giving international funds a significant role in determining how the market values the company once trading begins.
Goldman Sachs, Morgan Stanley and JPMorgan are acting as the leading banks on the initial public offering.
The listing comes at a difficult moment for Shein, which recently reported a $99mn bottom-line loss for the first quarter of 2026. Its sales have also been hit by changes to US trade policy that removed a long-standing exemption for low-value packages.
The US ended its so-called “de minimis” tariff exemption for small parcels in May last year. The arrangement had allowed Shein to send individual garments directly from China to American consumers without the duties that applied to larger shipments.
The European Union has since followed with a €3 duty on small parcels entering the bloc from outside the EU.
The UK is also planning to close its own small-parcel loophole, although the change is not scheduled to take effect until October 2028.
Shein said in its trading update that it was considering raising prices in the US and Europe to offset the impact on sales.
The pressure illustrates the challenge facing Shein as it transitions from a privately held growth company into a publicly traded retailer. Its model has depended heavily on high volumes, low prices and direct-to-consumer international shipping — precisely the areas increasingly exposed to tariffs, customs reforms and weaker consumer demand.
The Hong Kong listing will therefore represent more than a new source of capital. It will provide the first sustained public-market test of whether investors are prepared to value Shein as a global technology-enabled retailer, despite the regulatory and cost pressures confronting its ultra-low-price model.
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