Global Market | Shein set to raise $1.7 billion in Hong Kong IPO at $26.5 billion valuation: Reports

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Shein is expected to price the offering at HK$48.56 a share, close to the midpoint of its HK$47.60 to HK$49.50 range. The deal would raise approximately HK$13.6 billion ($1.73 billion), the sources told Reuters on condition of anonymity because the information has not been publicly disclosed.
The valuation represents a steep discount to Shein's previous private-market valuations. The listing was expected to value the company at around one-quarter of its nearly $100 billion peak valuation in 2022 and significantly below the $66 billion valuation recorded during a 2023 fundraising round.
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Hong Kong Listing Marks Major Milestone
Shein, headquartered in Singapore and founded in China, launched its Hong Kong IPO on Monday. Reuters reported on Tuesday that the overall order book had already been fully covered, indicating strong initial investor demand despite the company's valuation reset.
The listing comes after Shein spent the past four years pursuing potential listings in New York and London. The company has faced regulatory scrutiny and increasing business pressures in the United States and Europe, two of its most important markets.
Known for its low-priced apparel, including dresses priced around $5 and jeans around $10, Shein sells products across roughly 160 countries. Its rapid expansion has made it one of the world's largest online fast-fashion retailers, while also drawing greater attention from regulators over its supply chain, labor practices and competitive impact.
Final Price Due August 31
Shein is scheduled to announce the final IPO price on August 31, with trading expected to begin on September 1.
Cornerstone investors have committed to buying about $383 million worth of shares, according to the company's prospectus. Existing shareholders Boyu Capital, Tiger Global and General Atlantic are leading the cornerstone participation, while Tencent, Greenwoods, Taikang Life and UBS Asset Management are also set to invest.
The company plans to use roughly 80% of the IPO proceeds to strengthen its technology infrastructure and expand its brand and international presence.
Pressure on Growth and Margins
The IPO comes as Shein confronts a more challenging operating environment. The company has been dealing with slower revenue growth, weaker earnings and shrinking margins, alongside higher trade costs, tighter regulation and intensifying competition.
Shein expects first-half revenue growth to broadly track the 1.1% growth it reported in the first quarter, while its operating margin is expected to decline slightly.
The company has also agreed to pay as much as $3.5 billion in cash to certain investors who purchased special shares during earlier private funding rounds, adding to the financial considerations surrounding the IPO.
Shein's Hong Kong listing therefore represents both a major step toward becoming a publicly traded company and a significant repricing of the business from the extraordinary valuations it commanded during the peak of the global fast-fashion and e-commerce boom.
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