Shein, the Chinese-founded fast-fashion giant known for its ultra-cheap clothing sold largely through social media, has confirmed it will list on the Hong Kong Stock Exchange on 1 September, according to the BBC.
The company is targeting a valuation of close to $27bn (£19.8bn) at the top of its proposed price range. That marks a dramatic retreat from the roughly $100bn valuation Shein achieved during a private fundraising round in 2022, when investors still saw it as one of the world’s most valuable startups.
A Long Road to Going Public
The Hong Kong listing caps years of frustrated attempts by Shein to go public elsewhere. The company had previously pursued a listing in New York, and later shifted its ambitions to London, but both efforts stalled amid regulatory scrutiny over its supply chain, labour practices and environmental record.
Hong Kong offers a path forward, though the far smaller valuation reflects how much investor sentiment toward the company has cooled since its 2022 peak.
Mounting Business Pressures
The timing of the listing coincides with a rougher patch for Shein’s underlying business. The retailer has reported slowing sales and posted a recent quarterly loss, a marked change for a company that built its reputation on rapid, low-cost growth.
Compounding the pressure, the United States has removed a duty exemption that previously allowed small packages, including many of Shein’s low-value shipments, to enter the country without import tariffs. The end of that exemption strips away a cost advantage that had underpinned much of Shein’s pricing model for American shoppers.
Together, these headwinds help explain why a company once valued near $100bn is now heading to market at roughly a quarter of that figure, even as it finally secures the public listing it has sought for years.
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