Shein is seeking to raise up to $1.8 billion in a Hong Kong IPO that would value the fast-fashion retailer at about 70% below its private-market peak four years ago, as slower growth prospects are expected to weigh on investor demand.
The long-awaited Hong Kong IPO comes after Shein, known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, scrapped plans to list in New York and London over the past four years.
Shein on Monday launched the process to sell 280 million shares at between HK$47.60 and HK$49.50 per share, the company's filings showed, raising up to HK$13.86 billion ($1.77 billion) and valuing it at close to $27 billion at the top of that range.
The marked decline in valuation comes as tariffs, intensifying competition and rising costs cloud Shein's outlook. Shein was valued at $64 billion in 2023 and April 2024.
Even after it sharply cut the valuation, analysts said the growing headwinds in its core markets of the United States and Europe would weigh on the company's fundraising.
