Shein IPO debut disappoints: Fashion Giant tanks 10% on Hong Kong listing, valuation drops

Shein IPO listing: Shein Global Holdings Ltd. shares fell as much as 10% during their Hong Kong trading debut, marking a subdued start to an initial public offering that took years to reach the market. The listing valued the fast-fashion giant at a fraction of its once-expensive valuation.

Shein shares fell to a low of HK$43.72, compared with the IPO price of HK$48.56 per share. According to a Bloomberg report, the pricing gave Shein a market capitalisation of slightly more than $26 billion.

The valuation makes Shein one of the world's largest publicly traded apparel and fashion companies, although it remains behind Swedish retailer Hennes & Mauritz AB, which has a market valuation of around $30 billion.

Shein IPO Details

The Singapore-headquartered company sold around 280 million shares through its initial public offering, raising approximately HK$13.60 billion, or $1.74 billion. The final offer price was fixed at HK$48.56 per share, below the maximum offer price of HK$49.5.

The retail portion of the IPO was subscribed 5.6 times, while institutional investors bid for 2.6 times the shares available, the company said in a filing late Monday.

According to its prospectus, Shein plans to deploy 40% of the IPO proceeds towards strengthening its technology capabilities. Another 40% will be used to increase brand awareness and expand its global presence. The remaining proceeds will go towards corporate responsibility initiatives and general corporate purposes.

However, its financial performance has also raised concerns over profitability. During the first quarter of this year, the company generated revenue of $9.05 billion but reported a net loss of $99 million, compared with a profit in the corresponding period a year earlier. According to its prospectus, the loss was primarily driven by fair-value losses on its convertible redeemable preferred shares.

Meanwhile, the company's net revenue rose to $41.8 billion in 2025 from $38.7 billion in the previous year, according to its prospectus.

Founded in China and now headquartered in Singapore, Shein built its global fast-fashion business around a data-driven supply chain designed to rapidly manufacture and ship low-cost clothing directly to consumers.

The company was among the biggest beneficiaries of the e-commerce boom during the pandemic, with its valuation climbing to nearly $100 billion in 2022. Its latest IPO valuation of just over $26 billion, however, represents a significant decline from those levels.

However, its efforts to go public during that period did not materialise, as regulatory and political challenges derailed its plans to list in the US and the UK. Hong Kong eventually emerged as the destination for the retailer's stock market debut.

(With inputs from agencies)

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.