Shein Seeks $1.7 Billion in Hong Kong IPO at $26 Billion Valuation as Losses Mount
Updated
Updated · CNN · Aug 31
Shein Seeks $1.7 Billion in Hong Kong IPO at $26 Billion Valuation as Losses Mount
3 articles · Updated · CNN · Aug 31
Summary
$1.7 billion is what Shein sought to raise in its Hong Kong IPO last week, valuing the company at about $26 billion ahead of Tuesday’s listing — more than 70% below its 2022 peak of $98.2 billion.
Investor caution reflects weakening fundamentals: net income fell 39% last year, first-quarter losses widened to $99 million, and revenue growth slowed to less than 8% from more than 40% annually.
Tariff changes have hit its low-cost model after the US ended the de minimis exemption for small parcels and the EU removed a similar break last month, squeezing sales and thin margins.
Competition has also intensified, with Temu eroding customer retention while Shein’s order frequency plateaued at about four purchases a year despite its 2023 marketplace push.
The listing follows failed attempts in New York and London and continued scrutiny over labor, sustainability and Xinjiang-linked supply-chain allegations, underscoring the geopolitical risks facing Chinese-founded consumer brands.