Investors Not Convinced? Shein Delays Hong Kong IPO to September 1, Valuation Shrinks by Over 70%

Fast-fashion e-commerce giant Shein, originally aiming to complete its Hong Kong initial public offering (IPO) by the end of August, has delayed its listing to September 1 due to delays in investor subscription procedures.

The South China Morning Post reported on Thursday (the 20th) citing informed sources that Shein currently plans to begin bookbuilding from August 24 and bring in several cornerstone investors. However, most subscription allocations are still expected to be taken up by existing shareholders. Investment banks involved in the deal are also considering arranging funds from their own portfolios to participate as cornerstone investors.

Shein initially sought a valuation of at least $30 billion, but faced pushback from investors. Its上市 valuation is now expected to cap at no more than $30 billion. Compared to the company's valuation of nearly $100 billion in 2022, this represents a shrinkage of over 70%. As discussions around the listing have not yet concluded, the final fundraising amount, valuation, and timeline remain subject to change.

Founded in China, Shein is currently headquartered in Singapore. Major existing shareholders include founder Chris Xu (Xu Yangtian), other co-founders, as well as venture capital and sovereign wealth funds such as Tiger Global Management, IDG Capital, Boyu Capital, and HSG—the latter formerly known as Sequoia China. Shein has not responded to the report.

In recent years, Shein's revenue growth and profitability have slowed, compounded by a series of regulatory setbacks, putting continued pressure on its company valuation. The company generated over $40 billion in revenue last year, with net profit slightly above $2 billion. However, in the first quarter of 2026, it turned to a net loss of $99 million, a sharp decline from the $395 million profit recorded during the same period the previous year.

Shein stated that part of the loss stems from the United States eliminating the 'de minimis' exemption, increasing costs for low-value parcels previously unaffected by tariffs. The company also warned in its IPO prospectus that the European Union plans to terminate similar tariff exemption measures, which could further hinder growth this year.