Online fast-fashion giant Shein, immensely popular among Israeli consumers, is officially heading toward the public markets. According to reports by Reuters, the company is expected to price its initial public offering (IPO) on the Hong Kong Stock Exchange near the midpoint of its published range of HK$47.60 to HK$49.50 per share.

Pricing the deal at HK$48.56 per share will enable Shein to raise roughly $1.73 billion USD and anchor its market valuation at approximately $26.5 billion.

Drop From a $100 Billion Peak

The current valuation officially marks a significant erosion of the company’s financial standing in private markets. Shein’s valuation in this IPO represents just about a quarter of its private market peak in 2022, when it was valued at nearly $100 billion, and sits markedly below its $66 billion valuation during a private funding round in 2023.

The Hong Kong listing follows four years of unsuccessful efforts to register the company’s shares on primary exchanges in New York and London, stalled by regulatory hurdles, growing scrutiny over its supply chain, and geopolitical tensions. Founded in China and currently headquartered in Singapore, Shein has faced expanding obstacles in its core North American and European markets in recent years.

Expected Timeline and Use of Proceeds

The order book for the IPO, launched earlier this week, was fully covered within 24 hours. The company is expected to officially announce its final offer price on August 31, with trading scheduled to commence the following day, on September 1.

According to the prospectus, cornerstone investors led by existing shareholders—including Tiger Global, Boyu Capital, and General Atlantic—have already subscribed for roughly $383 million in shares. Other prominent financial institutions, such as Tencent, Taikang Life, and UBS Asset Management, are also participating.

Out of the proceeds raised, approximately 80% will be allocated toward upgrading the company’s technology infrastructure and expanding its global footprint. Concurrently, the company committed to paying up to $3.5 billion in cash to investors who held special shares from earlier private fundraising rounds.

Decelerating Growth and Margin Erosion

The IPO takes place during an operationally challenging period for the retail giant. Shein is experiencing a noticeable growth slowdown, posting a mere 1.1% year-over-year revenue increase in the first quarter—a pace projected to persist through the second half of the year. In addition, the firm is contending with declining operating margins, rising trade and compliance costs, and intensifying competition from rival fashion and e-commerce platforms.

Pricing this offering and transitioning into a public entity will test Shein’s ability to stabilize its financial metrics and restore investor confidence amid a complex operating environment.