Shein's IPO in Hong Kong - the company will be valued at approximately $26.5 billion

Shein is expected to price its initial public offering (IPO) shares on the Hong Kong Stock Exchange at around HK$48.56 — close to the midpoint of the offered range of HK$47.60–49.50.

The IPO is expected to raise approximately $1.7 billion for the company, with its market valuation set at around $26.5 billion.

This valuation falls significantly short of Shein's previous private valuations. In 2022, the company's value reached nearly $100 billion, while in a 2023 funding round it was valued at around $66 billion. Accordingly, the new IPO valuation is roughly three times lower than the 2022 peak.

Shein, headquartered in Singapore and founded in China, launched its Hong Kong IPO on Monday. According to Reuters, the IPO book was already fully covered by Tuesday.

However, demand from retail investors turned out to be relatively weak. Elvin Cheung, associate director at Hong Kong brokerage Prudential Brokerage, noted that interest in new listings has declined following the correction in Asian markets in July.

Investors are also questioning Shein's growth prospects, as the company simultaneously faces rising costs, intensifying online competition, tightening regulations, and increasing trade expenses.