Shein Finally Made It To The Stock Market. Investors Immediately Knocked 9% Off Its Shares.

Shein's long-awaited arrival on the public markets got off to a rocky start Tuesday, with its shares dropping as much as 10% during their Hong Kong debut after years of failed listing attempts and a steep decline in the fast-fashion company's valuation.

The Singapore-headquartered retailer sold about 280 million shares at HK$48.56 each, raising roughly HK$13.6 billion, or $1.7 billion, and valuing the company at about $26.5 billion. Reuters noted that the IPO price was near the midpoint of Shein's marketed range of HK$47.60 to HK$49.50 per share.

That valuation is roughly three-quarters below the nearly $100 billion Shein commanded in a private funding round in 2022. Slower growth and mounting pressure in the company's core U.S. and European markets had weighed on its prospects, while the offering also gave Shein's founders shares carrying substantially greater voting power than those sold to public investors.

Shein's financial performance has weakened as trade changes disrupt the low-cost model that helped it grow rapidly outside China. The company generated $41.8 billion in revenue in 2025, up from $38.7 billion the previous year, but reported a $99 million net loss in the first quarter of 2026. U.S. sales slowed after Washington eliminated the duty-free exemption for low-value packages, while a one-time accounting charge also contributed to the quarterly loss.

Competition has intensified as TikTok Shop, Temu and other online platforms target many of the same price-conscious consumers. Bryan Gildenberg, managing director of Retail Cities, told CNBC that TikTok's combination of entertainment and shopping was challenging some of the "treasure hunt" appeal that previously helped Shein and Temu attract customers.

Shein plans to spend 40% of the IPO proceeds on improving its technology capabilities and another 40% on strengthening its brand and expanding globally, according to its Hong Kong Stock Exchange listing documents. The remainder is earmarked for corporate responsibility initiatives and general corporate purposes.

Tuesday's listing followed several unsuccessful attempts by Shein to reach public markets elsewhere. The company confidentially filed for a U.S. IPO in 2023 before shifting its plans to London and eventually Hong Kong as regulatory scrutiny complicated those earlier efforts. Reuters reported last month that the Hong Kong listing was targeting a valuation of roughly $26 billion to $27 billion.

Investor enthusiasm remained subdued once trading began, with Shein shares falling as much as 10% before recovering much of the decline. The Associated Press reported that the stock eventually closed at HK$48.50, almost unchanged from its HK$48.56 IPO price, after the volatile first trading session.