Fast-fashion giant Shein has announced its intention to debut on the Hong Kong stock market on September 1, aiming to raise up to HK$13.86 billion (approximately $1.77 billion).
In a filing, the company stated it will offer nearly 280 million shares at a price range of HK$47.60 to HK$49.50 per share. At the upper end of this range, Shein would achieve a valuation of nearly $27 billion. This figure represents a substantial decrease from the $100 billion valuation the company reached during a private fundraising round in 2022, a decline attributed to slower sales growth and increased costs.
The planned initial public offering (IPO) follows previous unsuccessful attempts to list in the United States and London. These efforts were reportedly hindered by regulatory challenges and scrutiny surrounding Shein's operations. Although headquartered in Singapore, the company was founded in China. The IPO is being supported by major financial institutions, including Goldman Sachs, Morgan Stanley, and JP Morgan.
Shein's financial performance has shown signs of strain. In the first quarter of the year, the company reported a net loss of $99 million, a reversal from a net income of $395 million during the same period a year prior. This downturn coincided with a slowdown in sales, which analysts linked in part to the removal of an import duty exemption on small packages by the United States. The ongoing trade tensions between the U.S. and China also add a layer of uncertainty to the company's market outlook.