Shein aims to raise up to $1.8 billion in a Hong Kong IPO that values the fast-fashion retailer roughly 70% below its private-market peak four years ago, with a slower growth outlook set to weigh on investor demand. The long-awaited Hong Kong IPO comes after Shein, known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, scrapped plans to list in New York and London over the past four years.
Shein on Monday launched the process to sell 280 million shares at between HK$47.60 and HK$49.50 per share, the company's filings showed, raising up to HK$13.86 billion ($1.77 billion) and valuing it at close to $27 billion at the top of that range. The marked decline in valuation comes as tariffs, intensifying competition from rivals such as PDD-owned Temu and rising costs cloud Shein's outlook. Shein was valued at $64 billion in 2023 and April 2024. Reuters last week exclusively reported the IPO was set to value the company at around a quarter of the $100 billion it was worth in 2022. Even after the sharp cut, analysts said the growing headwinds in its core markets of the United States and Europe would weigh on the company's fundraising.
