Shein targeting up to £20bn valuation in September stock market float

Fast fashion firm Shein could be valued at up to 27 billion US dollars (£19.8 billion) when it makes its long-awaited stock market debut in Hong Kong next week.

The pricing for shares set by the group – giving it a valuation of between 202 billion HK dollars (26 billion US dollars/£18.9 billion) and 210 billion HK dollars (27 billion US dollars/£19.6 billion) – is thought to be far less than originally hoped for by the group, having reportedly been worth more than 100 US dollars (£73.3 billion) at its peak following a private fundraising in 2022.

It is said to have been initially aiming for a 30 billion US dollar (£22 billion) valuation.

The online retail giant – known for selling extremely cheap clothes – has been planning to float since 2023, with previous attempts to list in New York and London failing after political and regulatory scrutiny.

In listing notice on Monday, the group revealed it will sell 280 million shares for between 47.60 HK dollars (£4.44) and 49.50 HK dollars (£4.62) in the September 1 listing.

The flotation will raise as much as 14 billion HK dollars (1.8 billion US dollars/£1.3 billion) for the group, but it will also have the option to sell an extra 42 million shares.

Around 90% of the shares will be available to overseas investors, Shein said in the filing.

US banking giants Goldman Sachs, Morgan Stanley and JP Morgan are backing the initial public offering (IPO).

Shein recently revealed it slumped to a 99 million US dollar (£73 million) bottom line loss in the first quarter of 2026 and saw sales hit by US president Donald Trump’s move to scrap an import duty exemption on small packages.

In May last year, the US removed a so-called “de minimis” tariff exemption on small packages, which Shein had previously used to ship garments from China directly to customers.

Earlier this month, the EU also made the same move by imposing a three euro (£2.56) duty on small parcels imported from outside the trading bloc.

The UK is also planning to close the small parcels loophole, but not until October 2028.

Shein said in the trading update it was looking at raising prices across the US and Europe to offset the sales impact.

Dan Coatsworth, head of markets at AJ Bell, said Shein’s IPO comes as it faces pressure from a number of angles, including the scrapping of small packages exemption, increased competition from Chinese rival Temu and changing consumer demand.

He said: “Consumer tastes are shifting, with younger people becoming more environmentally conscious.

“Certain individuals no longer want to buy a cheap dress or top and throw it away after one wear.

“Instead, there is growing interest in second-hand clothing, hence why the likes of Vinted are thriving and Shein is finding life tough going.

“All this means that Shein is having to work faster and harder, which is not the kind of narrative a company needs when it is trying to win over new investors.”