Shein is seeking commitments from major investors including Boyu Capital and UBS Asset Management as it prepares for a long awaited Hong Kong initial public offering, according to Bloomberg and Financial Times. The fast fashion company is looking to secure cornerstone backing before launching the offering, which could raise around $2 billion if Shein sells up to 8% of its shares.
The fundraising comes as Shein sharply scales back its valuation expectations. The company is now targeting a valuation of roughly $25 billion to $28 billion, compared with the nearly $100 billion valuation it achieved in a 2022 funding round. The reduction reflects slowing sales growth, higher trade costs, regulatory pressure and intensifying competition in its key markets.
For potential cornerstone investors, the offering provides exposure to one of the world’s largest online fashion retailers at a significantly lower valuation than previous private market benchmarks. However, Shein’s recent performance presents challenges, with revenue growth slowing sharply and the company recording a $99 million net loss in the first quarter of 2026.
The IPO is expected to be a major test of investor appetite for Shein as it transitions from a private technology and retail giant into a publicly traded company. Reports indicate the company could begin taking investor orders as early as August 20, with a potential Hong Kong trading debut around August 28, although the timetable remains subject to change.
