Shein's up to US$1.8 billion Hong Kong IPO fully covered by investor demand: sources

Shein’s up to US$1.8 billion Hong Kong IPO fully covered by investor demand: sources Growing headwinds in Shein’s core markets - the US and Europe - could weigh on the firm’s growth prospects Summarise Share Add BT as a preferred source Add BT as a preferred source Published Tue, Aug 25, 2026 · 03:03 PM The company is best known for selling US$5 dresses and US$10 jeans to shoppers in about 160 countries. PHOTO: REUTERS [HONG KONG] Online fast-fashion retailer Shein’s Hong Kong initial public offering (IPO) book to raise up to US$1.8 billion has been fully covered by investor demand, two sources said, bringing it closer to its long-awaited market debut amid growing business and regulatory challenges. Shein launched its new share sale on Monday (Aug 24), valuing the company at up to US$27 billion. Investor orders for the offering have come from a number of existing shareholders, China-focused and multi-strategy funds, added the sources with knowledge of the matter. They declined to be named as they were not authorised to speak to the media. A spokesperson for Shein did not immediately respond to a Reuters request for comment. The Singapore-based, China-founded company is selling 280 million shares at HK$47.60 to HK$49.50 a share in the IPO, according to the company’s filings, which would raise US$1.8 billion at the top end. The final price of the shares is due to be unveiled on Aug 31 and the stock is scheduled to begin trading on Hong Kong’s stock exchange on Sep 1, according to the company filings. Asean Intelligence Get insights into businesses across South-east Asia Get the free report Shein’s valuation in the IPO is nearly 70 per cent below the nearly US$100 billion private market valuation that it reached in 2022. The company is best known for selling US$5 dresses and US$10 jeans to shoppers in about 160 countries. Analysts said growing headwinds in Shein’s core markets – the US and Europe – could weigh on the company’s growth prospects. SEE ALSO Shein’s valuation plunges 70% to US$27 billion at best in Hong Kong IPO Shein to pay up to US$3.5 billion to select pre-IPO investors around Hong Kong listing ‘Disposable’ clothes, oversight risks: Shein IPO will not mask sustainability challenges Shein’s IPO comes as the company works to address environmental, social and governance concerns that have triggered regulatory investigations and fines in several countries, complicating previous attempts to list its shares. Over the past four years, the company tried to list in New York and London, but faced investor and political criticism over its environmental, labour and governance standards. Shein is under investigation by the European Commission and the US Federal Trade Commission. Previous probes resulted in fines in France over alleged fake discounts and in Italy over greenwashing as fast fashion purveyors come under increased scrutiny from regulators. Greenwashing refers to the practice of overstating the environmental benefits of an organisation. A Shein spokesperson said that the firm maintained “high standards of corporate governance, transparency and accountability”. REUTERS Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Shein IPO Hong Kong Stock Exchange Fashion industry Share with us your feedback on BT's products and services Feedback TRENDING NOW Deal brewing for portfolio of 50 conservation shophouses at about S$500million UOB v Lippo Marina Collection: Court quadruples damages awarded to bank to S$76.1 million Forbes Asia names 15 Singapore firms on list of 100 small companies to watch in 2026 OK Lim’s daughter loses challenge to exclude evidence in ongoing trial