Shein aims for almost $27bn valuation in 1 September stock market debut

Fast-fashion giant Shein is preparing for its stock market debut on the Hong Kong exchange on September 1, with plans to raise up to HK$13.86 billion (£1.3 billion; $1.77 billion). The company aims to offer nearly 280 million shares at a price between HK$47.60 and HK$49.50.

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At the top of the range, it would value the firm at almost $27bn (£19.8bn).

At the upper end of the pricing range, Shein could achieve a valuation of almost $27 billion (£19.8 billion). This figure, however, falls considerably short of the $100 billion valuation it secured in a private fundraising round in 2022. The reduced valuation reflects a period of weaker sales growth and increased operational costs.

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But that is much lower than the $100bn valuation it reached in a round of private fundraising in 2022, reflecting weaker sales growth and higher costs.

The long-awaited initial public offering (IPO) comes after Shein encountered difficulties in listing on US and London markets. These attempts were hampered by regulatory challenges and scrutiny, particularly concerning its supply chain and labor practices. Although headquartered in Singapore, Shein was originally founded in China.

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The long-awaited move debut comes after failed attempts to list in the US and London due to regulatory challenges amid scrutiny of Shein, which has its headquarters in Singapore but was founded in China.

The IPO is being supported by prominent Wall Street investment firms, including Goldman Sachs, Morgan Stanley, and JP Morgan. Earlier in July, Shein reported a quarterly loss, signaling a slowdown in sales. This downturn was partly attributed to the removal of an import duty exemption on small packages by former US President Donald Trump. The company posted a loss of $99 million in the first three months of the year, a stark contrast to a net income of $395 million in the same period last year. The ongoing uncertainty surrounding US-China trade tariffs also presents a challenging environment for the listing.

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The initial public offering (IPO) is being backed by Wall Street investment giants Goldman Sachs, Morgan Stanley and JP Morgan.