Shein targets up to $50b valuation in Hong Kong IPO

It is less than half the $100b valuation discussed during its 2022 funding round.

Shein is expected to launch its Hong Kong initial public offering (IPO) as early as August 2026 after receiving approval for the listing, according to GlobalData.

The fast-fashion retailer is seeking a valuation of between $40b and $50b, less than half the $100b valuation discussed during its 2022 funding round.

GlobalData said the lower target reflects slower growth, increased focus on profitability, regulatory risks, and concerns over the sustainability of Shein's ultra-fast fashion business model.

The company also faces rising cost pressures, including the European Union's €3 fee on low-value imports introduced in July 2026, the removal of US de minimis exemptions since 2025, and continued scrutiny over its labour practices and product compliance.

“However, the lower valuation could improve the attractiveness of the offering by aligning expectations more closely with current market conditions,” said Sharon Iles, senior apparel analyst at GlobalData.

She noted that Shein has guided for net profit to nearly double from $1.1b in 2024 to $2b in 2025, highlighting its ability to generate strong cash flow despite moderating growth.


“A successful IPO would provide additional capital to accelerate investment in logistics infrastructure, AI-driven merchandising, and supply chain capabilities, whilst supporting expansion across Eastern Europe, the Middle East, and South America, where online fashion penetration continues to increase,” she added.

However, Iles said the Hong Kong listing does not eliminate the structural challenges facing the company as competition intensifies from rivals such as Temu, Inditex-owned Lefties, and Primark.

She noted that Primark and Inditex have stronger sustainability credentials through more established supply chain audits and compliance programmes, whilst Shein continues to face criticism over the lack of comparable independent supplier audits and recurring allegations of unethical labour practices.

“In contrast, Shein continues to face criticism over the absence of comparable independent supplier audits and regularly faces allegations of unethical labour,” Iles said. “The success of the listing will therefore be judged by whether Shein can demonstrate durable growth and margin resilience in an increasingly regulated and competitive global apparel market.”