Singapore-based, China-origin fast fashion e-commerce SHEIN plans to price its Hong Kong IPO near the midpoint of the offering range, at approximately HK$48.56 per share, with a range of HK$47.60 to HK$49.50. According to insiders, this pricing will raise about HK$13.6 billion, equivalent to $1.73 billion, corresponding to a valuation of about $26.5 billion. The company has not responded to requests for comment.

About 280 million Class B shares will be issued, with approximately 10% allocated for public offering, stock code 00625, and plans to list on the Hong Kong Stock Exchange on September 1. The book has already been fully covered, with the subscription multiples for institutions and retail investors set to be announced the day before listing. Cornerstone investors have subscribed for about $383 million, including existing shareholders Boyu, Tiger Global, General Atlantic, as well as Tencent, Greenwoods, Taikang Life, and UBS Asset Management. Joint sponsors are Goldman Sachs, Morgan Stanley, and JPMorgan Chase.

The $26.5 billion valuation is about a quarter of the nearly $100 billion peak in private equity in 2022 and lower than the $66 billion raised in 2023. Initial discussions during the roadshow considered a valuation of $30 billion to $40 billion, ultimately settling in the range of $26 billion to $27 billion. Based on projected sales, the valuation is about 0.7 times, higher than Zalando's 0.4 times, but lower than H&M's approximately 1.1 times and Inditex's approximately 4.0 times. Analysts suggest that based on 2025 earnings, the corresponding price-to-earnings ratio is about 12 to 13 times, with an issuance ratio of about 6.59%, and a greenshoe option attached.

Business figures have slowed down. Net revenue for 2025 is projected to be about $41.85 billion, with a net profit of $2.06 billion, a year-on-year decline of 38.7%. In the first quarter of 2026, the company shifted from a profit of $395 million in the same period last year to a loss of $99 million, partly due to a $328 million accounting loss from special stock treatment. The U.S. cancellation of tax exemptions for small packages and rising tariffs have forced the company to raise prices in the U.S.; the conflict in Iran has also increased costs and slowed down deliveries in some markets. Products are still sold in about 160 countries, with dresses priced at around $5 and jeans at $10.

About 40% of the funds raised will be invested in technology and inventory systems, 40% in brand and overseas expansion, 10% in corporate responsibility, and the remainder for general operations. The China Securities Regulatory Commission approved overseas listings on July 10, after failing to list in New York and London for four years. Under the weighted voting rights structure, the founding team maintains control.

In terms of market mechanics, this is a liquidity event after a valuation reset. Buyers are original shareholders taking cornerstone shares and Hong Kong retail funds, while sellers are early private equity investors looking to cash out. Funds flow from the public market into the company's accounts, then to technology and marketing, rather than immediately expanding production. Beneficiaries are cornerstone investors locked in for six months and investment banks receiving underwriting fees; those under pressure are late private equity investors who entered at high valuations in 2022 to 2023 and have seen significant paper losses, as well as those relying on a growth model based on low-cost direct shipping from the U.S. Coverage of the order book does not equal listing premium, and pricing at the midpoint indicates sufficient demand but limited enthusiasm.

Source: Public information