Shein Seeks $40 Billion Valuation for Hong Kong IPO

Shein is seeking a valuation between $40 billion and $50 billion for its initial public offering in Hong Kong. According to a recently filed prospectus, the fast fashion retailer is facing slowing growth and a sharp decline in profitability. Net income fell 39% to $2.06 billion in 2025, and the company reported a $99 million loss in the first quarter of 2026.

The company attributes these financial struggles to the removal of the U.S. de minimis exemption and the introduction of new import fees in Europe. These regulatory changes have increased operational expenses and hindered sales growth. To offset these costs, the retailer is considering increasing prices for customers in the United States.

This target valuation reflects a significant decline from the company's private market peak. Shein's valuation dropped from $98.2 billion in 2022 to $64 billion in 2024 before the current IPO filing.