Shein Targets a Valuation of Up to About 27 Billion Dollars in Its Hong Kong IPO as the Order Book Is Covered
Shein has launched its Hong Kong initial public offering at a valuation of up to about 27 billion dollars, roughly 72.5 percent below the 98.2 billion dollars it commanded in a 2022 private fundraising, on our calculation. The Singapore-headquartered, China-founded fast-fashion company is offering about 280 million shares priced between 47.60 and 49.50 Hong Kong dollars, and aims to raise up to 13.86 billion Hong Kong dollars, or about 1.77 billion United States dollars, according to Reuters and CNBC.
A public valuation far below the private peak
The valuation is set by the offering rather than by any writedown. At the top of the range the company would be worth close to 27 billion United States dollars, which is only about 27.5 percent of its 98.2 billion dollar 2022 valuation, and about 57.8 percent below the 64 billion dollars it was assigned in 2023 and again in April 2024, on our calculation. Analysts cited by the wires linked the lower valuation to a harder environment, including added United States tariffs and stronger competition.
The offering has not yet been finally priced. The company is marketing shares within the stated range, with the final offer price due on 31 August and trading on the Hong Kong Stock Exchange scheduled to begin on 1 September.
| Measure | Value |
|---|---|
| Indicative valuation, top of range | up to ~$27bn |
| 2022 private valuation | $98.2bn |
| Decline from 2022 peak | ~72.5% (our calculation) |
| Shares offered | ~280 million |
| Price range | HK$47.60 to HK$49.50 |
| Maximum proceeds | up to HK$13.86bn (~$1.77bn) |
| Final price | 31 August 2026 |
| Trading begins | 1 September 2026 |
Reuters and CNBC. The company is Singapore-headquartered with origins in China and is listing in Hong Kong; the 98.2 billion dollar figure is from its 2022 private fundraising.
Demand has already covered the deal
Reuters reported on Tuesday that investor orders had already fully covered the offering, with demand coming from existing shareholders as well as China-focused and multi-strategy funds, according to sources it cited. A covered book at this stage means orders are sufficient to absorb the shares on offer, though it does not determine how the stock will trade once listed.
Why it matters: The offering gives public investors their first chance to set a market price for one of the world’s largest online fashion retailers after several years of attempted listings, and the gap of about 72.5 percent to its private-market high reflects a reassessment of the growth, profitability and regulatory risks investors are prepared to accept, in a market shaped by tariffs and intensifying competition. For Hong Kong, a listing of this size is a test of appetite for large consumer offerings, and a covered order book is an early signal of demand at the reduced valuation.
Outlook: Two dates now matter: the final offer price on 31 August and the trading debut on 1 September. Pricing near the top of the range would signal comfort with a valuation close to 27 billion dollars, while a lower price would show that further concessions were needed despite the covered book. The debut itself will be the firmer test of whether investors judge the discount to the 2022 peak as fair.
Sources: Reuters and CNBC.
