Fast-fashion giant Shein is preparing to go public in Hong Kong at a valuation of roughly $25 billion, a dramatic comedown from the nearly $100 billion valuation investors assigned the company during the height of the pandemic-era e-commerce boom. 

The Singapore-headquartered retailer is expected to sell as much as 8% of the company, potentially raising about $2 billion. That would still make the listing one of Hong Kong’s largest recent IPOs, but the valuation represents only about one-quarter of Shein’s reported $98 billion private-market valuation in 2022. 

The lower target reflects a much tougher business environment. Shein’s revenue growth slowed from more than 40% in 2023 to about 8% in 2025, while net income fell 39% last year to roughly $2.06 billion. In the first quarter of 2026, the company swung to a $99 million loss. 

Regulatory changes have also hit the business model that helped Shein dominate ultra-cheap online fashion. The loss of favorable U.S. import treatment for low-value packages, higher trade costs in Europe and tougher scrutiny of its supply chain have made direct shipping from Chinese factories more expensive and complicated. Competition from Temu and other low-cost platforms has added further pressure. 

The valuation has fallen rapidly even during the IPO process itself. Shein had previously been considering a $40 billion to $50 billion valuation, then lowered expectations to roughly $30 billion to $40 billion as investors pushed back. Interest has since centered in the mid-to-high $20 billion range. 

For investors, the IPO will be an important test of how public markets now value global e-commerce companies built around extremely fast growth and low-cost cross-border shipping. Shein remains enormous, generating more than $40 billion in annual revenue, but investors are increasingly focused on whether that scale can translate into durable profits under higher tariffs, slower growth and tighter regulation.

The company is expected to move toward launching the Hong Kong offering as early as this week, though the final valuation, number of shares sold and proceeds could still change depending on investor demand. 

JBizNews Desk | Hong Kong

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