Shein Targets Valuation of Approximately $25 Billion for Hong Kong IPO

Online fast fashion retailer Shein is targeting a company valuation of around $25 billion for its planned initial public offering in Hong Kong. Some sources indicate the valuation could range between $25 billion and $28 billion based on the marketing price band. This figure represents a significant decrease from a nearly $100 billion valuation seen during a share sale four years ago and is lower than the $30 billion to $40 billion target the company sought earlier this month.

Shein plans to issue up to 8 percent of its total shares in the IPO. A $25 billion valuation would result in an offering size of up to $2 billion. The company reported a $99 million quarterly loss in the first quarter of 2026, which followed a slowdown in sales after the United States removed an import duty exemption on small packages. Filings to the Hong Kong Stock Exchange in July also noted a hefty one time accounting charge.

Factors contributing to the lower valuation include intensifying competition, tighter regulatory scrutiny, and crackdowns on e commerce platforms selling cheap Chinese made goods in Shein's largest markets. Under the terms of its IPO filing, Shein may be required to provide extra shares to certain pre IPO investors if the valuation falls below agreed thresholds. A spokesperson for Shein did not immediately respond to requests for comment.