HONG KONG — Shein will list on the Hong Kong stock exchange on 1 September after setting a valuation range of $26 billion to $27 billion for its initial public offering. The company plans to raise up to HK$13.86 billion ($1.77 billion) in the offering as it prepares to enter the public markets.

The retailer reported a net loss of $99 million in the first quarter of 2026, reversing from a net income of $395 million in the first quarter of 2025. Shein said it lost $328 million due to an accounting change for special investor shares in the first quarter of 2026.

Revenue growth decelerated to 8% in 2025, down from 20.7% in 2024 and 41.1% in 2023. Total revenue reached $41.8 billion in 2025. U.S. revenue fell more than 3% from 2024 to 2025 and dropped 14% in the first quarter of 2026 compared to the prior year.

Shein will offer nearly 280 million shares priced between HK$47.60 and HK$49.50 each. The final offer price will be announced on 31 August. Goldman Sachs, Morgan Stanley, and JP Morgan are backing the IPO.

UBS Asset Management has joined the offering as a cornerstone investor. Boyu Capital is in talks to become a cornerstone investor in Shein's Hong Kong listing. Shein has set aside at least $400 million of stock for cornerstone investors. Tencent and General Atlantic are among existing investors weighing commitments to the IPO.

Boyu Capital owns Series D and D+ preferred shares in Shein implying a value of roughly $815 million. Shein had first sought an IPO valuation of US$30 billion to US$40 billion when investor meetings ahead of the IPO kicked off. The company was valued at US$64 billion in 2023 and April 2024. Shein reached a valuation of approximately $100 billion in an April 2022 private fundraising round.

Chinese regulators approved Shein's Hong Kong offering on 10 July. Shein moved its headquarters to Singapore between 2021 and 2022. The company runs most of its operations from China but sells all its goods outside the country. Shein operates in about 160 countries and sells products such as $5 dresses and $10 jeans.

Shein opened its first physical outlet in the BHV department store in Paris in November 2025. French authorities imposed two fines on Shein in June totalling more than 22 million euros ($25.1 million). The French fines cited problems with product traceability, environmental labelling, and delivery times.

Shein has paid over 210 million euros in various French fines over the years. Italy has imposed fines on Shein alleging misleading environmental claims.

In early 2025, Shein refused to reassure British MPs that its products do not include cotton produced in the Xinjiang region of China. Shein was founded by Chris Xu. Records indicate Shein was founded in 2012, while other records state it was founded in 2010 by partners including Alvin Jiang. Alvin Jiang is a grandson of Jiang Zemin, who was leader of the Chinese Communist Party from 1989 to 2002.

Timeline

Shein was founded in 2010 by partners including Alvin Jiang. Shein was founded in 2012. Shein confidentially filed for an IPO in the U.S. in November 2023.

Shein's revenue growth was 41.1% in 2023. Shein's revenue growth was 20.7% in 2024. Shein reported a net income of $395 million in the first quarter of 2025.

What's New

"In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs," Shein said. Shein had 281 million active customers as of the end of March 2026. Shein's U.S. revenue fell more than 3% from 2024 to 2025. Shein's U.S. revenue dropped 14% in the first quarter of 2026 compared to the prior year.

Shein's active customer count rose more than 16% year-on-year as of the end of March 2026. Shein customers placed more than one billion orders as of the end of March 2026.

Why It Matters

Shein's shift from a $395 million profit to a $99 million loss represents a swing in financial performance ahead of its public listing. The reduction in valuation from the $100 billion peak in 2022 to the current $26 billion to $27 billion range reflects a significant decline in estimated worth. Revenue growth deceleration from 20.7% in 2024 to 8% in 2025 indicates a slowing expansion trajectory.

The company faces regulatory challenges in multiple markets, including fines in France and Italy related to environmental and operational compliance. The loss of the U.S. de minimis exemption has prompted price adjustments, which may impact competitiveness in a key market where revenue already declined by 14% in the first quarter of 2026. European growth, with 156 million monthly users, remains a critical counterbalance to U.S. declines.