Key Takeaways:
Shein Global Holdings Ltd. plans to debut on the Hong Kong exchange around Aug. 28, ending a listing pursuit that failed in New York and London.
The fast-fashion retailer will start taking investor orders as soon as Aug. 20, according to people familiar with the matter, who asked not to be identified discussing private information.
Shein had targeted a valuation of about $30 billion in the offering — a fraction of its peak — but has faced pushback from investors and may lower it further, the people said. The deal is likely to raise $2 billion to $3 billion, with existing shareholders taking up as much as about half of the offering.
The listing marks a steep reset from the roughly $100 billion valuation Shein commanded in 2022, as growth slowed on US tariffs, competition from PDD Holdings Inc.'s Temu and the war in the Middle East.
Shein has told prospective investors it expects net income to drop this year before returning to near 2025's $2.06 billion in 2027, some of the people said. The company reported a $99 million loss in the first quarter of 2026 after the US eliminated a tariff exemption for low-value packages, a result that included a $328 million fair-value charge tied to convertible preferred shares.
US revenue fell more than 3 percent between 2024 and 2025, then dropped 14 percent year over year in the first quarter of 2026. Europe, which accounted for about 35 percent of revenue last year, ended duty-free treatment for packages below €150 in July and introduced a €3 duty per product category, prompting Shein to warn it may raise prices there.
Shein is pitching itself as a peer to Zara owner Inditex SA and H&M AB, which trade at price-earnings ratios of 28.7 and 19.5 times, respectively. Morgan Stanley expects the company's 2025-2028 net profit growth rate to exceed both rivals.
The retailer received approval from China's securities regulator on July 10 and subsequently cleared the Hong Kong stock exchange's listing committee. Deliberations are ongoing and details such as size, valuation and timing may change, the people said. Shein didn't immediately respond to a request for comment.
The pricing would give Shein an enterprise value well below the roughly $64 billion it fetched in an April 2024 fundraising round. First-day trading on Aug. 28 will test institutional demand for one of the region's largest listings this year.
This article is for informational purposes only and does not constitute investment advice.
