Shein, an online fast-fashion retailer known for extremely low prices, is proceeding with an initial public offering on the Hong Kong stock exchange on 1 September. The company will list at a valuation of approximately $27bn, representing a substantial decline from its $100bn valuation during a fundraising round in April 2022, when it was ranked the third most valuable startup globally.
The IPO marks the conclusion of a protracted listing process marked by regulatory and reputational obstacles. The company initially pursued a listing in New York but faced regulatory blocks centered on forced labor allegations. Subsequent plans for a London listing encountered similar concerns regarding supply chain practices, raised by campaigners, lawmakers, and investors. The company relocated its headquarters to Singapore between 2021 and 2022, a transition analysts attributed to efforts to distance itself from increasing international scrutiny of Chinese companies.
Recent financial performance has deteriorated notably. Shein reported a loss of $99m during the first quarter of this year compared to net income of $395m in the corresponding period the previous year. The company attributed this downturn partly to the removal of US import duty exemptions on small packages and to delivery delays caused by regional geopolitical developments. The offering will comprise approximately 280 million shares priced between HK$47.60 and HK$49.50 each, projected to raise roughly £1.3bn at the upper end of the range.
The company maintains substantial operational presence in Europe, recording 156 million average monthly users by the end of last year, positioning it among the continent’s largest e-commerce platforms. Shein’s business model centers on direct-to-consumer shipments from China, which benefit from favorable tax treatment in many markets. The company opened its first physical retail outlet in November at a Paris department store, an event that drew both customer interest and protest demonstrations.
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