Shein has launched its long-awaited initial public offering in Hong Kong at a valuation of up to $27 billion, about 70% below its peak private-market valuation, highlighting growing pressure on the ultra-fast-fashion business model.
The China-founded, Singapore-headquartered retailer is offering about 280 million shares at HK$47.60 to HK$49.50 each, seeking to raise as much as HK$13.86 billion ($1.77 billion). Its shares are expected to begin trading on Sept. 1.
The valuation marks a sharp decline from 2022, when Shein was valued at nearly $100 billion by private investors. The company had emerged as one of the world’s most valuable private fashion and technology businesses, driven by low prices, rapid product launches and social-media marketing aimed at younger consumers.
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The lower IPO valuation reflects a more challenging environment for the company. Shein has faced slower growth, higher operating costs and increasing regulatory scrutiny across key markets. Changes to U.S. trade rules affecting low-value shipments have also weakened one of the advantages that helped its cross-border e-commerce model expand rapidly.
Competition has intensified as well. Rival platforms such as Temu have expanded aggressively in the global discount-fashion and e-commerce market, forcing Shein to compete for price-sensitive consumers while maintaining its rapid inventory cycle.
According to recent reporting, Shein generated about $41.8 billion in revenue in 2025, but growth has slowed from the exceptionally strong rates recorded during its earlier expansion. Rising tariffs, logistics expenses and compliance costs have added further pressure on profitability.
Shein’s path to a public listing has been unusually prolonged. The company previously explored IPO plans in the United States and Britain before turning to Hong Kong. The listing comes as regulators and consumers increasingly scrutinise fast-fashion companies over environmental impact, labour practices, product safety and supply-chain transparency.
For investors, the IPO will provide a test of whether Shein can maintain its global scale while adapting to a market that places greater emphasis on profitability and sustainable growth. The company will also have to demonstrate that its digitally driven, on-demand production model can remain competitive as trade policies and consumer expectations change.
The reduced valuation has significance for the wider textile and apparel industry. It suggests investors may be reassessing the economics of ultra-fast fashion, where low prices and rapid product turnover increasingly face higher trade, compliance and supply-chain costs.
Shein’s September listing could therefore become an important benchmark for the future of global fast fashion and the broader cross-border apparel e-commerce market.