Online fast-fashion retailer Shein has attracted enough investor orders to fully cover its planned Hong Kong initial public offering, according to two sources familiar with the deal, moving the company closer to its long-awaited stock market debut.
The offering could raise up to $1.8 billion and values Shein at as much as $27 billion. The company began marketing the share sale on Monday as it seeks to establish a public market presence amid increasing regulatory scrutiny and challenges to its business model.
Investor interest has come from a range of existing shareholders, China-focused funds and multi-strategy investment funds, the sources said. They requested anonymity because they were not authorised to speak publicly about the transaction.
Shein did not immediately respond to a request for comment.
The Singapore-based retailer, founded by Chinese entrepreneur Chris Xu, is offering 280 million shares at between HK$47.60 and HK$49.50 each, according to company filings. If priced at the upper end of the range, the IPO would raise about $1.8 billion.
The final offer price is expected to be announced on Monday, with Shein scheduled to begin trading on the Hong Kong Stock Exchange on September 1.
The IPO represents a major step for Shein after years of efforts to enter public markets. The company had previously explored a listing in the United States and later considered London, but regulatory and political concerns complicated those plans.
Shein’s proposed valuation is substantially lower than the level it reached during its private fundraising boom. The company was valued at close to $100 billion in 2022, meaning the current IPO valuation of up to $27 billion represents a decline of almost 70%.
The lower valuation reflects a more difficult environment for the company and the wider fast-fashion sector. Shein has faced scrutiny over its supply chain, labour practices, environmental impact and the treatment of small-value imports.
Its rapid growth has been supported by a business model based on producing large numbers of inexpensive clothing items and selling them directly to consumers through online platforms. The approach has helped Shein expand rapidly across international markets, but has also attracted criticism from regulators and campaigners.
The Hong Kong listing would give Shein access to a major Asian financial centre while providing existing investors with a potential route to sell their holdings.
Strong demand at the start of the bookbuilding process suggests investors remain interested despite the company’s lower valuation and regulatory challenges. The final pricing and performance after the September debut will provide a clearer indication of how markets view Shein’s prospects as a public company.
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