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Online fast fashion retailer Shein could achieve a market valuation of up to $27 billion (£19.8 billion) when it makes its long-anticipated stock market debut in Hong Kong next week.

Share pricing set by the business gives it an estimated worth of between 202 billion HK dollars ($26 billion/£18.9 billion) and 210 billion HK dollars ($27 billion/£19.6 billion).

This is understood to be significantly lower than the group had hoped, having reportedly reached a peak valuation of more than $100 (£73.3 billion) after private fundraising in 2022.

It had reportedly targeted an initial valuation of $30 billion (£22 billion).

Known for selling extremely cheap clothes, the digital retail giant has been preparing to float since 2023, following earlier unsuccessful attempts to list in New York and London due to political and regulatory scrutiny.

A listing notice issued on Monday revealed the company will offer 280 million shares priced between 47.60 HK dollars (£4.44) and 49.50 HK dollars (£4.62) for its 1 September debut.

The flotation is expected to raise up to 14 billion HK dollars ($1.8 billion/£1.3 billion) for the business, alongside an option to sell an additional 42 million shares.

Around 90 per cent of the shares will be available to overseas investors, Shein said in the filing.

US banking giants Goldman Sachs, Morgan Stanley and JP Morgan are backing the initial public offering (IPO).

Shein recently revealed it slumped to a $99 million (£73 million) bottom line loss in the first quarter of 2026 and saw sales hit by US president Donald Trump’s move to scrap an import duty exemption on small packages.

In May last year, the US removed a so-called “de minimis” tariff exemption on small packages, which Shein had previously used to ship garments from China directly to customers.

Earlier this month, the EU also made the same move by imposing a €3 (£2.56) duty on small parcels imported from outside the trading bloc.

The UK is also planning to close the small parcels loophole, but not until October 2028.

Shein said in the trading update it was looking at raising prices across the US and Europe to offset the sales impact.

Dan Coatsworth, head of markets at AJ Bell, said Shein’s IPO comes as it faces pressure from a number of angles, including the scrapping of small packages exemption, increased competition from Chinese rival Temu and changing consumer demand.

He said: “Consumer tastes are shifting, with younger people becoming more environmentally conscious.

“Certain individuals no longer want to buy a cheap dress or top and throw it away after one wear.

“Instead, there is growing interest in second-hand clothing, hence why the likes of Vinted are thriving and Shein is finding life tough going.

“All this means that Shein is having to work faster and harder, which is not the kind of narrative a company needs when it is trying to win over new investors.”