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Hong Kong IPO priced
Fast-fashion retailer Shein began trading in Hong Kong after its shares fell 7% in the Hong Kong market debut, following a pricing of HK$48.56 per share that was below the maximum offer price of HK$49.5.
“Shares of fast-fashion giant Shein fell 7% as they began trading in Hong Kong on Tuesday.”
CNBC said Shein sold about 280 million shares in its initial public offering, raising around 13.60 billion Hong Kong dollars ($1.74 billion) and valuing the company at around $26.5 billion.
Reuters reported that the Hong Kong debut was set to open flat on Tuesday, hurt by setbacks that had long delayed its listing and undermined the foundations of its business.
Reuters also said Shein has been known globally for selling $5 tops and $10 dresses, and that its last week IPO valued the company at about $26.5 billion after it was previously worth an estimated $100 billion in 2022.
CNBC added that Shein plans to use 40% of the IPO proceeds to enhance its technology capabilities and another 40% to boost brand awareness and strengthen its global presence, with the remainder going toward corporate responsibility initiatives and general corporate purposes.
Valuation and financials
CNBC said Shein reported net revenue of $41.8 billion in 2025, compared with $38.7 billion a year earlier, and that in the first quarter of this year it swung to a net loss of $99 million from a profit a year earlier.
CNBC attributed the loss mainly to fair-value losses on its convertible redeemable preferred shares, as per its prospectus.
Reuters said Shein’s Hong Kong debut came after earlier attempts to go public in New York and London did not materialize, with the listing blocked by Chinese authorities.
In a separate Reuters report, Shein priced its Hong Kong initial public offering below the top end of its marketed range, raising HK$13.60 billion ($1.74 billion) from the share sale at HK$48.56 per share.
Reuters also said the Hong Kong public offering portion was subscribed 5.63 times, while the international portion was subscribed 2.59 times, according to Shein’s filing.
What comes next
Shein’s Hong Kong debut follows a long process after it first filed confidentially for a U.S. IPO in 2023 before turning to London, where Beijing withheld approval over risk disclosures tied to its China supply chain, effectively blocking the listing.
“Beijing withheld approval over risk disclosures tied to its China supply chain, effectively blocking the listing.”
CNBC said the company’s prospectus showed it would allocate the IPO proceeds across technology, brand awareness, corporate responsibility initiatives, and general corporate purposes, while Reuters said the debut was hurt by setbacks that had long delayed its listing.
Reuters reported that known globally for selling $5 tops and $10 dresses, Shein has been humbled by tariff and duty changes in the U.S. and Europe.
Quartz reported that Shein stock sank more than 10% in gray-market trading on Monday ahead of the official start of trading on the Hong Kong Stock Exchange, and that brokerages quoted the stock down more than 10% shortly after gray-market trading got underway.
Reuters also said Hong Kong Exchanges and Clearing would launch options and allow short selling of Shein shares from their trading debut on Tuesday, as the company’s shares were set to begin trading under stock code 00625.