Shein is targeting a valuation of almost £20 billion when the fast-fashion giant finally makes its long-delayed stock market debut in Hong Kong next week, a far cry from the more than $100 billion valuation it commanded at its peak.
The online retailer said on Monday it would price its shares between HK$47.60 and HK$49.50, implying a market value of between HK$202 billion and HK$210 billion — roughly $26 billion to $27 billion, or £18.9 billion to £19.6 billion.
The valuation is well below the $30 billion, or about £22 billion, the company had reportedly been seeking.
It is also less than a third of the valuation attached to Shein following a private fundraising round in 2022, when the company was reportedly worth more than $100 billion.
The flotation marks the latest attempt by the Chinese-founded retailer to overcome years of political and regulatory scrutiny.
Shein has been pursuing a public listing since 2023, initially targeting New York before shifting its attention to London. Neither attempt came to fruition as regulators and politicians raised concerns surrounding the company’s supply chain, labour practices and links to China.
The Hong Kong listing is now intended to provide Shein with access to international capital while giving early investors a route to realise their holdings.
The company plans to sell 280 million shares in the September 1 offering, potentially raising HK$14 billion, or about $1.8 billion, with a further 42 million shares available under an additional allotment option.
About 90 per cent of the shares will be offered to overseas investors.
Goldman Sachs, Morgan Stanley and JPMorgan are acting as advisers to the deal, underscoring the significance of what could become one of Hong Kong’s largest listings this year.
But Shein is entering the public markets at a markedly more difficult moment.
The company reported a net loss of $99 million, or about £73 million, in the first quarter of 2026, while sales have been hit by the removal of the US’s de minimis exemption for low-value parcels.
The exemption had allowed Shein to ship large volumes of inexpensive goods directly from China to American consumers without the tariffs that apply to larger commercial shipments.
The US ended the exemption in May last year, increasing the cost of Shein’s business model just as competition from fellow Chinese retailer Temu intensified.
The European Union has followed with a €3 duty on small parcels arriving from outside the bloc.
Britain is also preparing to close its own small-parcel loophole, although the change is not due until October 2028.
Shein has warned that it may respond by raising prices in the US and Europe, potentially testing the central proposition that helped drive its explosive growth: ultra-cheap fashion delivered directly to consumers.
Dan Coatsworth, head of markets at AJ Bell, said the IPO was arriving as Shein faced pressure on several fronts, including the end of small-parcel exemptions, tougher competition from Temu and changing consumer behaviour.
For investors, the Hong Kong flotation therefore represents less a triumphant arrival on the public markets than a test of whether Shein can defend its extraordinary growth model after years of regulatory pressure and a dramatic reassessment of its value.
The company once commanded a valuation comparable with some of the world’s biggest fashion groups. It is now asking public investors to value it at less than $30 billion — while simultaneously confronting rising costs, tariffs and a rapidly changing market.
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