Online fast‑fashion retailer Shein announced on Monday that it is launching the book‑building phase for a Hong Kong initial public offering. The company aims to raise up to HK$13.86 billion (approximately $1.77 billion) and could be valued at as much as $26.81 billion, according to the offering prospectus.

Shein plans to sell 280 million shares at a price range of HK$47.60 to HK$49.50 per share. The IPO is scheduled to be priced on August 31, with shares debuting on the Hong Kong Stock Exchange on September 1.

Financial pressures behind the float

The offering comes as Shein’s revenue growth has slowed and core earnings have weakened. Margins have contracted, raising concerns that the company’s rapid expansion is encountering headwinds from higher trade costs, tighter regulatory scrutiny, and intensifying competition in global e‑commerce.

Recent financial results show the retailer posted a quarterly loss of $99 million after the United States removed an import‑duty exemption on small packages. Additionally, Shein recorded a $328 million fair‑value charge on convertible redeemable preferred shares following an accounting change.

Company profile

Shein is known for offering low‑priced apparel—such as $5 dresses and $10 jeans—to shoppers in roughly 160 countries. The company’s aggressive pricing and rapid product turnover have driven its global growth, but the recent financial setbacks highlight the challenges of sustaining that model amid shifting trade policies and market competition.

Investors will watch the upcoming pricing and market debut closely, as the outcome may signal broader trends for fast‑fashion and e‑commerce firms seeking public capital in a tightening economic environment.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.