2 hours ago - Business

Shein gets ready for its Hong Kong IPO

Dan Primack

Shein store — Photo: Riccardo Milani / Hans Lucas / AFP via Getty Images

Chinese fast-fashion giant Shein plans to raise up to around US$1.8 billion in its Hong Kong IPO. At the high end of its proposed range, the company would have a $26.8 billion market cap.

Why it matters: This would establish Shein as one of the world's most valuable public clothing companies, but it's still a massive disappointment for many of its VC backers.

By the numbers: Shein raised Series F funding in 2022 at a $100 billion valuation, but one year later raised at $66 billion — still well above IPO expectations.

Participants in those deals included HSG, General Atlantic, Pan Pacific Capital, Brookfield Growth, and Tiger Global.
Some of them will receive cash and/or stock compensation for the valuation slide, thanks to downside protections on earlier rounds.

Elsewhere: CFIUS reportedly is investigating Shein's agreement to buy San Francisco-based apparel retailer Everlane from L Catterton.

The bottom line: Shein, which scrapped earlier plans to go public in New York and then in London, has been hammered by U.S. tariff policy. Specifically the termination of a de minimis exemption for shipments below $800.

In its IPO prospectus, Shein warns that it could soon face similar tariff challenges in Europe.

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Shein gets ready for its Hong Kong IPO

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