Shein Launches Hong Kong IPO at Up to $27 Billion Valuation, Down 73% From Peak

Quick Facts

Shein launched its Hong Kong IPO on Aug. 24, targeting a valuation of up to $27 billion at the top of its HK$47.60 to HK$49.50 per share price range.
The company aims to raise up to HK$13.86 billion ($1.77 billion) by selling roughly 280 million Class B shares, with trading expected to begin Sept. 1.
Shein’s peak private market valuation was approximately $100 billion in 2022, making the current offering a roughly 73% decline in four years.

Shein Global Holdings Ltd. officially launched its Hong Kong global offering on Aug. 24, setting an indicative price range of HK$47.60 to HK$49.50 per share. The final price will be announced Aug. 31. Shares are expected to begin trading on the Hong Kong Stock Exchange on Sept. 1 under ticker 00625.HK.

Goldman Sachs, Morgan Stanley, and JPMorgan are advising on the deal. The offering marks the end of a years-long effort to go public after failed attempts in both New York and London.

A Valuation in Freefall

The $27 billion ceiling represents a steep fall from Shein’s private market high. The company raised money at a $100 billion valuation in 2022, then at $64 billion in both 2023 and April 2024. Earlier this month, reports placed the IPO target at $30 billion to $40 billion before the final range was set lower.

Shaun Rein, managing director at China Market Research Group, said: “By waiting, they missed the golden windows of opportunity.”

The Road to Hong Kong

Shein originally planned to list on the New York Stock Exchange. That effort stalled under regulatory scrutiny from U.S. lawmakers over its supply chain, cotton sourcing, and labor practices. Two dozen bipartisan members of Congress urged the SEC to halt the IPO pending forced-labor verification.

The company then pursued a London Stock Exchange listing. The U.K.’s Financial Conduct Authority approved its application in April 2025. But Shein never secured clearance from China’s securities regulator for the London route and quietly dropped its U.K. PR firms, Brunswick and FGS, signaling the effort was faltering.

Shein filed confidentially for a Hong Kong IPO in July 2025. The China Securities Regulatory Commission approved the Hong Kong listing application on July 10, 2026, clearing the final regulatory hurdle.

Financials Under Pressure

Shein’s revenue grew to $41.8 billion in 2025, up from $38.7 billion in 2024. But growth has slowed sharply. Revenue rose 41.1% in 2023, 20.7% in 2024, and just 8% in 2025. In the first quarter of 2026, growth slowed further to 1.1%.

Net income fell 38.7% to $2.06 billion in 2025 from $3.37 billion the prior year. In Q1 2026, Shein posted a net loss of $99 million, compared to a $395 million profit in the same quarter a year earlier.

De Minimis Removal Hits Hard

The Trump administration’s elimination of the de minimis duty-free exemption in May 2025 dealt a direct blow to Shein’s U.S. business. The rule had previously allowed shipments valued under $800 to enter the United States without import duties. Products Shein ships to the U.S. now face tariffs ranging from 10% to 87.5%.

U.S. revenue fell 14.3% year-over-year to roughly $2 billion. The U.S. accounted for 29.4% of Shein’s annual revenue in 2023. By Q1 2026, that share had dropped to 22.5%. More than 90% of Shein’s net revenue in 2025 came from products stored in Chinese central warehouses.

Europe faces similar headwinds. The European Union imposed a 3 euro fee on low-value e-commerce imports. Shein warned in its prospectus that European trends could match or exceed the impact seen in the United States, and that it expects to raise prices there to offset higher costs.

What It Means for Competitors

Shein’s IPO at a dramatically reduced valuation reflects the broader disruption facing ultra-low-cost cross-border e-commerce. The removal of de minimis and rising tariff pressure have eroded the structural cost advantage that powered Shein’s growth. U.S. retailers and DTC brands that competed against duty-free Chinese imports now operate on a more level playing field, at least on price.