Fast fashion giant Shein valued at up to $27 billion in Hong Kong IPO - CNBC TV18

Fast fashion giant Shein valued at up to $27 billion in Hong Kong IPO Shein's valuation dropped 70% from its $100B peak to $27B for its Hong Kong IPO, aiming to raise HK$13.86B. It faces slowing growth, rising costs, and market changes. By Reuters August 24, 2026, 7:13:26 AM IST (Updated) 3 Min Read Online fast-fashion retailer Shein's valuation has dropped by around 70% from a near $100 billion ​private market peak four years ago, as it aims to raise up to HK$13.86 billion ($1.77 billion) in its Hong Kong ‌IPO launched on Monday. Shein is selling 280 million shares between HK$47.60 and HK$49.50 per share, the filings showed, valuing it at close to $27 billion at the top of that range. The valuation has dropped sharply from earlier private fundraising rounds that valued Shein at $98.2 billion in 2022. The company was valued at $64 billion in 2023 and April ​2024. Also Read: Shein finally wins China's approval for Hong Kong IPO, in third attempt to go public The company will announce the final price on August 31 and start trading on September 1. Known for selling $5 dresses and $10 jeans ​to shoppers in about 160 countries, Shein had first sought an IPO valuation of $30 billion to $40 billion when investor meetings ⁠ahead of the IPO kicked off. The marked decline in valuation comes after Shein faced questions over slowing growth, rising costs and changing market ​conditions. Investors had said they were not convinced Shein could return to the growth rates that valued it at nearly $100 billion four years ​ago. Cornerstone investors led by existing shareholders Boyu, Tiger Global and General Atlantic have subscribed for about $383 million worth of Shein shares, the prospectus showed. Tencent, opens new tab, Greenwoods, Taikang Life and UBS Asset Management will also take stock. Shein said it would use about 80% of the cash raised in the IPO to improve its technology and increase ​its brand and global presence. It has agreed to pay up to about $3.5 billion in cash to certain investors who bought special shares in ​earlier private funding rounds, according to the prospectus. The shares sold in the Hong Kong IPO will have one-tenth the voting rights of the shares held by ‌the company's ⁠founders. Co-founders Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren will control 90% of Shein's voting rights, the prospectus showed. GROWTH SLOWS SHARPLY The long-awaited float comes as slowing revenue growth and weaker core earnings weigh on Shein's business, while shrinking margins have also raised concerns its expansion is running into headwinds from higher trade costs, tighter regulatory scrutiny and intensifying competition across global e-commerce. Shein said in the prospectus its first-half 2026 revenue growth ​is expected to be broadly in ​line with the 1.1% growth ⁠posted in the first quarter, while its operating margin is expected to be slightly lower than the first-quarter level. The company said this is due to new European import charges, pricing pressure and weaker demand in the ​Middle East linked to the Iran war. Also Read: Shein reportedly working towards Hong Kong listing after London IPO stalls It swung to a $99 million quarterly loss after the US removed an ​import duty exemption ⁠on small packages, and a $328 million fair-value charge on convertible redeemable preferred shares following an accounting change. Shein's IPO is the largest new share sale in Hong Kong in 2026, surpassing autonomous driving firm Momenta Global's, opens new tab $751 million offering in July. It is the third-largest IPO in Asia, behind CXMT, opens new tab and China ⁠Resources New ​Energy, opens new tab, which raised $9.8 billion and $3.6 billion respectively, in Chinese onshore IPOs. Hong Kong IPOs have ​raised about $41 billion so far this year, a record for the period and more than double the $17 billion raised a year earlier, LSEG data showed. Continue Reading First Published: Aug 24, 2026 7:12 AM IST Tags Hong Kong stock exchange IPOs