𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Fast fashion giant Shein is to make its stock market debut in a move which could value the company at as much as 27 billion US dollars (£19.8 billion).

However, this would still be sharply lower than previous valuations, amid pressure from tax changes and weak consumer sentiment.

Investors will find how much the company is initially valued at when it makes its debut on the Hong Kong stock exchange on Tuesday.

Last week, the retail firm said in a pricing document that it was set for a valuation of between 202 billion HK dollars (26 billion US dollars/£18.9 billion) and 210 billion HK dollars (27 billion US dollars/£19.6 billion).

Reuters has reported that sources close to the company expect it to be valued at about the middle of this range.

It is understood that this would be far less than originally hoped for by the group, having reportedly been worth more than 100 billion US dollars (£73.3 billion) at its peak after a private fundraising in 2022.

It is said to have been initially aiming for a 30 billion US dollar (£22 billion) valuation.

The online retail giant, known for selling extremely cheap clothes, has been planning to float since 2023, and previous attempts to list in New York and London failed after political and regulatory scrutiny.

In its listing notice, the group said it would sell 280 million shares for between 47.60 HK dollars (£4.44) and 49.50 HK dollars (£4.62) in the September 1 listing.

The flotation will raise as much as 14 billion HK dollars (1.8 billion US dollars/£1.3 billion) for the group, but it will also have the option to sell an extra 42 million shares.

About 90% 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 disclosed it slumped to a 99 million US dollar (£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 three euro (£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.