Shein Raises $1.7 Billion in Tepid Hong Kong IPO
Fast-fashion giant Shein secured US$1.7 billion in a Hong Kong listing, though its share price opened down 10 percent and closed at HK$48.5 after missing private fundraising valuation expectations.
Shein raised US$1.7 billion in an initial public offering in Hong Kong on Tuesday. The company previously sought to list in New York and London, but regulatory scrutiny halted those plans. Chinese officials approved the sale in July. On opening day, the share price fell by 10 percent before recovering slightly to close down 0.1 percent at HK$48.5. This transaction set the company's valuation at around US$26.3 billion, significantly lower than the nearly US$100 billion reached during private fundraising in 2022. Shein moved its headquarters to Singapore between 2021 and 2022 to limit global scrutiny. The retailer's European customer base consisted of an average monthly user base of 156 million by the end of 2025, rivaling China's AliExpress with 193 million users and US Amazon with approximately 180 million users. Shein stated proceeds would finance technological capabilities and expand its international presence. The company faces ongoing scrutiny regarding environmental impact and human rights allegations.
