SHEIN launches IPO at $27B valuation, 70% below peak
What's the story
Fast fashion giant SHEIN has launched its initial public offering (IPO) in Hong Kong, aiming to raise HK$13.86 billion ($1.77 billion). The company is offering 280 million shares at a price range of HK$47.60 to HK$49.50 per share, which would value it at nearly $27 billion at the top end of that range. This marks a significant drop from its nearly $100 billion valuation in 2022 and even from the $64 billion valuation it had in April 2024.
IPO details
Final price to be announced on August 31
The final share price will be announced on August 31, and trading is set to begin on September 1.
The company had initially targeted an IPO valuation of $30 billion to $40 billion but has since revised its expectations amid questions over slowing growth, rising costs, and changing market conditions.
Financial outlook
SHEIN's revenue growth challenges and IPO proceeds utilization
SHEIN expects its first-half 2026 revenue growth to be broadly in line with the first quarter.
Its operating margin is expected to be slightly lower than the first-quarter level due to new European import charges, pricing pressure, and weaker demand in the Middle East amid the Iran war.
SHEIN plans to use about 80% of the cash raised from this IPO to improve technology and increase brand presence globally. It is currently available in about 160 countries.
Control retention
Post-IPO voting rights structure
Post-IPO, SHEIN's shares will have one-10th the voting rights of those held by its founders.
The company's co-founders Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren will retain 90% of the voting rights.
This structure is designed to ensure that the founding team maintains majority control over strategic decisions even after going public.