Shein is finally heading for the stock market but not at the eye-watering valuation investors once expected.
The fast-fashion giant is set to debut in Hong Kong on 1 September, potentially valuing the company at about $26.8bn.
That figure is a huge drop from the roughly $100bn valuation Shein commanded in 2022. So, what changed?
Founded in 2008, Shein became a global fashion powerhouse by selling ultra-cheap, trend-driven clothes.
These clothes were manufactured through a vast network of factories in China.
It now serves customers across more than 150 countries.
But the business model is facing growing pressure.
Rising Costs Loom
The US has ended a duty exemption that helped Shein ship low-cost packages cheaply, while tariffs and higher costs have squeezed profits.
The company reported a $99m quarterly loss earlier this year.
Analysts say those changes could narrow Shein’s price advantage over rivals such as H&M and Primark.
Regulatory scrutiny has also complicated its efforts to list in London and the US.
Still, Shein has more than 281 million active customers.
Can its huge global following overcome rising costs, tougher trade rules and supply-chain concerns?
Its Hong Kong debut may provide the answer and investors will be watching closely.
