Fast fashion giant Shein launches up to $1.8 billion Hong Kong IPO

Online fast-fashion giant Shein has launched the book-building phase for its long-anticipated initial public offering (IPO) in Hong Kong. The retailer aims to raise as much as HK$13.86 billion, equivalent to $1.77 billion, potentially valuing the company at up to $26.81 billion, according to its prospectus.

Shein is offering 280 million shares, with prices ranging from a minimum of HK$47.60 to a maximum of HK$49.50 per share. The final pricing for the IPO is scheduled for August 31, with the company expected to debut on the stock exchange on September 1.

This highly anticipated listing occurs at a time when Shein faces significant headwinds. The company has experienced slowing revenue growth and weaker core earnings. Furthermore, shrinking profit margins have raised concerns that its rapid expansion is being hampered by rising trade costs, stricter regulatory oversight, and intensifying competition within the global e-commerce landscape.

Shein, known for its affordable clothing like $5 dresses and $10 jeans sold in approximately 160 countries, recently reported a $99 million quarterly loss. This downturn was partly attributed to the U.S. removing an import duty exemption for small packages. Additionally, the company incurred a $328 million fair-value charge related to convertible redeemable preferred shares following an accounting adjustment.