Catenaa, Monday, August 17, 2026- Fast-fashion retailer Shein is targeting a valuation in the range of $26 billion to $27 billion in its initial public offering in Hong Kong.
The firm will seek to raise about $2 billion in the IPO, Bloomberg News reported.
The company had been gauging interest from investors and recently targeted a $30 billion valuation but faced pushback, Bloomberg News has reported. Existing shareholders may take up as much as about half of the deal, the report said.
Shein is planning to list around the end of the month, the report said. Deliberations are ongoing, and details such as size, valuation and timing may change.
Founded in China but now headquartered in Singapore, Shein is nearing the end of a long journey to go public, after failing to proceed with IPOs in both New York and London.
After reaching about $100 billion in 2022, its valuation has plummeted as growth slowed in the wake of tariffs and competition from PDD Holdings Temu.
The firm built a global fast-fashion empire by offering low-priced, trend-driven apparel shipped directly from suppliers. But US tariffs, followed by the Middle East war, have translated into higher material costs and eventually increased prices for consumers.
Shein posted a loss of $99 million in the first quarter of this year, versus a $395 million profit a year earlier, according to its preliminary prospectus.
It also disclosed slowing revenue growth. The business is expected to be impacted further by a new European Union levy on packages worth less than €150 ($173.93).
Backers of the company include IDG Capital, Mubadala Investment, Coatue Management and HSG.
The company is considering a combination of cash payouts and free additional shares to some investors in its later fundraising rounds to help lower the cost base for them, Bloomberg News reported.
Goldman Sachs Group, Morgan Stanley and JPMorgan Chase are arranging Shein’s IPO.
