Shein Is Finally Going Public, But Far From the Valuation Once Expected for the Company

Fast-fashion giant Shein is preparing to launch its long-awaited Hong Kong initial public offering as soon as Aug. 19, moving closer to a stock market debut after years of regulatory hurdles and failed listing attempts in the U.S. and U.K.

The Singapore-headquartered company has already begun marketing the offering to investors and could formally launch the IPO next Wednesday, Reuters reported.

Shein is targeting a valuation of between $30 billion and $40 billion, a fraction of the nearly $100 billion valuation the company commanded at the height of the fast-fashion boom.

The IPO would mark a major milestone for Shein, which has spent years attempting to secure a public listing while facing scrutiny over its supply chain, trade practices and ties to China.

The company was valued at $98.2 billion in 2022, making it one of the world's most valuable private startups at the time. That valuation dropped to around $64 billion in 2023 and remained at that level in an April 2024 fundraising round.

The company is prioritizing a valuation that could support its shares after the listing rather than seeking the highest possible price at the IPO, according to the report.

Shein is facing slowing growth and pressure on profitability following major changes to low-value import rules in the U.S. and Europe.

The company reported a $99 million loss in the first quarter of 2026, after the U.S. eliminated a tariff exemption that had allowed low-value packages to enter the country duty-free.

The quarterly result also included a $328 million fair-value charge related to convertible redeemable preferred shares following an accounting change.

Shein has raised U.S. prices to offset higher tariff costs, but the increases have weighed on demand.

U.S. revenue fell more than 3% between 2024 and 2025 before dropping 14% year over year in the first quarter of 2026.

Europe, which accounted for about 35% of Shein's revenue last year, is also introducing higher costs for low-value e-commerce shipments.

The European Union ended duty-free treatment for packages valued below €150 in July and introduced a €3 duty for each distinct product category in qualifying shipments.

Shein has warned that it may increase prices in Europe to offset some of those costs and that the impact on sales could match or exceed what it experienced following the U.S. changes.

The trade pressures have raised questions over the sustainability of a business model built around selling extremely inexpensive clothing to consumers around the world.

The Hong Kong listing follows unsuccessful attempts by Shein to go public in both New York and London.

Shein initially pursued a U.S. IPO but encountered political and regulatory scrutiny. The company later shifted its listing plans to London, where it again struggled to secure all the approvals needed to proceed.

The retailer finally received approval from China's securities regulator for a Hong Kong IPO on July 10, clearing one of the biggest remaining hurdles to the listing.

It subsequently secured approval from the Hong Kong stock exchange's listing committee.

The latest valuation target would put Shein much closer to traditional fashion retailer H&M than some of the world's biggest apparel companies.

At a valuation of $30 billion to $40 billion, Shein would be valued at roughly 0.7 to one times its 2025 sales, compared with about 1.1 times sales for H&M, according to Reuters calculations.

By comparison, Zara owner Inditex was valued at about 4.6 times sales, while Uniqlo parent Fast Retailing traded at roughly 7.6 times sales.

The discount reflects concerns about Shein's lower profit margins and uncertainty over future earnings as tariffs and regulatory changes increase costs in some of its biggest markets.