Shein Targets $27bn Hong Kong IPO Valuation
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- Shein plans to raise up to HK$13.86bn (£1.3bn; $1.77bn) by offering nearly 280 million shares at HK$47.60 to HK$49.50, with trading due to begin on 1 September.
- Shein’s top-end valuation of almost $27bn is far below the $100bn valuation it reached in private fundraising in 2022, reflecting weaker sales growth and higher costs.
- Shein’s Hong Kong IPO follows failed attempts to list in the US and London amid regulatory scrutiny; the company is headquartered in Singapore and was founded in China.
- Shein is backed for the offering by Goldman Sachs, Morgan Stanley and JP Morgan, and has shifted from a $395m first-quarter net profit a year earlier to a $99m loss.
- Shein said the loss followed slower sales after US President Donald Trump removed an import duty exemption on small packages, with the company considering higher US prices to offset added costs.
- Shein said the Iran war hurt demand, increased costs and delayed deliveries in some markets; it also faces environmental concerns and allegations of forced labour in its supply chains.
Why it matters: A top-end $27bn valuation would leave Shein at less than a third of its $100bn 2022 private mark, reflecting the weaker sales growth and higher costs cited in its filing. The offering also comes with a $99m first-quarter loss after the US removed a small-package duty exemption, making the reset concrete for prospective investors.
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