Chinese e-commerce group Shein is pursuing a Hong Kong initial public offering (IPO) with a targeted valuation of $26 billion to $27 billion, according to a report citing unnamed sources.
The fast-fashion retailer, known for its low-cost, trend-driven apparel and online-first model, has engaged banks including Goldman Sachs and Morgan Stanley for the listing, the report stated. Shein’s valuation would align with its previous private funding round in April 2024, when it raised $2 billion at a $34 billion valuation, though the IPO target reflects a lower implied market value.
The company has faced regulatory and geopolitical scrutiny in recent years, particularly in the United States, where lawmakers have raised concerns over its supply chain practices and ties to China. Shein has sought to diversify its supply chain by expanding manufacturing in countries such as Brazil, India, and Turkey, while also investing in sustainability initiatives to address criticism of its environmental impact.
A Hong Kong listing would provide Shein with access to Asian capital markets and potentially reduce its reliance on U.S. investors amid ongoing trade tensions. The company has not yet confirmed the IPO plans publicly, and details such as the offering size and timing remain undisclosed.
Shein’s move follows a challenging period for Chinese consumer-facing companies seeking overseas listings, amid heightened regulatory scrutiny and market volatility. The outcome of the IPO could influence investor appetite for similar firms in the region.
