Shein seeks to raise up to US$1.76 billion in Hong Kong initial public offering

Based on maximum offer price, IPO would value online fast-fashion retailer at over US$27 billion

Fast-fashion retailer Shein Global Holdings is seeking to raise as much as HK$13.85 billion (US$1.76 billion) in a Hong Kong initial public offering (IPO) that was initially planned four years ago.

Shein will sell 279 million shares at HK$47.6 to HK$49.5 each, according to a filing to the city’s stock exchange on Monday.

Shein began taking investor orders on Monday, with trading expected to start on September 1.

Cornerstone investors – who will get guaranteed allocations in exchange for holding the stock for at least six months – have agreed to buy about US$383 million worth of Shein shares. They include Boyu Capital, Tiger Global, General Atlantic, Tencent Holdings, Greenwoods, Taikang Life and UBS.

The cornerstone tranche accounted for up to 22.5 per cent of the total funds to be raised, the online fashion platform said.

The IPO would value the company at over US$27 billion, based on the maximum offer price. That would be a significant markdown from its peak valuation of nearly US$100 billion in 2022, as well as its Series D+ funding valuation of around US$64 billion in 2023.