Kenneth Glad
A major online retailer prepares for public trading after years of rapid expansion. Recent disclosures point toward slower growth, weaker earnings and higher import costs.
According to Shein’s Hong Kong offering documents, about 280 million shares are being offered at HK$47.60 to HK$49.50 each. The sale could raise as much as HK$13.86 billion, or roughly US$1.77 billion, with final pricing expected on August 31 before trading begins September 1, writes The Guardian.
At the upper end of the range, the Singapore-headquartered retailer would be valued at close to US$27 billion. That represents a significant reset from earlier private-market funding rounds. Reuters reported valuations of US$98.2 billion in 2022 and US$64 billion in both 2023 and April 2024, illustrating how investor expectations have changed as Shein’s growth has slowed and operating conditions have become more difficult.
Around 80 percent of the proceeds from Shein’s initial public offering, or IPO, are earmarked for technology, brand development and further international expansion.
An IPO is the process through which a private company sells shares to public investors for the first time and becomes publicly traded. Cornerstone investors have already committed about US$383 million to the offering, giving Shein a base of institutional demand before its shares become available to the wider market.
Hong Kong is Shein’s latest route to a public listing after earlier efforts in New York and London failed to progress. The company, founded in China and now based in Singapore, subsequently received Chinese regulatory approval for the Hong Kong transaction, removing a key hurdle that had complicated its previous listing ambitions.
Revenue growth slows sharply
The prospectus records revenue of US$32.1 billion in 2023, US$38.75 billion in 2024 and US$41.85 billion in 2025. Although sales continued to rise, the pace weakened considerably: Revenue growth fell from 20.7 percent in 2024 to 8 percent in 2025. Net income also declined, dropping from US$3.37 billion in 2024 to US$2.06 billion in 2025.
The slowdown became more visible at the start of 2026. First-quarter revenue increased just 1.1 percent to US$9.05 billion, while Shein recorded a US$99 million net loss. That result included a US$328 million fair-value loss linked to convertible redeemable preferred shares, meaning part of the reported loss reflected a change in the accounting value of securities issued to earlier investors rather than ordinary operating expenses alone.
Changes to US trade rules have created another challenge. The removal of the US de minimis exemption increased costs and weighed on American sales. The exemption had allowed qualifying low-value packages shipped directly to US consumers to enter the country without the normal import duties applied to larger shipments. That system was particularly important to ecommerce companies such as Shein, which frequently send individual orders directly to customers.
Customer numbers have continued to rise despite the weaker financial results. Active accounts increased from about 241 million to 281 million across the comparable 12-month periods ending March 2025 and March 2026. Customers were ordering slightly less frequently, however, with the average number of annual purchases slipping from 4.0 to 3.9.
The lower IPO valuation also has consequences for some existing shareholders. Certain preferred investors received contractual protections when they originally invested, covering situations in which a future public offering valued Shein below earlier funding rounds. Reuters reported that those provisions could lead to cash payments of up to about US$3.5 billion, while some eligible investors may also receive additional shares.
Despite selling stock to the public, Shein’s founders are expected to retain control of the company. Its weighted voting structure gives founder-held shares greater voting power, leaving the four co-founders with roughly 90 percent of voting rights after the listing.
Sources: Reuters, The Guardian
