Shein plans Hong Kong IPO with steep valuation cut amid FTC probe

Singapore‑based fast‑fashion retailer Shein is preparing a Hong Kong initial public offering while acknowledging a sharp decline in its valuation. The company is considering a "cost reset" for late‑stage investors, effectively lowering the price paid by those who invested at peak valuations of around $100 billion. Shein now targets an IPO valuation of roughly $40‑50 billion and hopes to raise $2‑3 billion, with the listing possibly as early as August‑September 2026. The China Securities Regulatory Commission approved the Hong Kong listing in July 2026.

In parallel, Shein disclosed that the U.S. Federal Trade Commission is investigating its American operations. The company said the probe could lead to a settlement requiring significant monetary payments that would materially affect its financial condition. Shein confirmed it is cooperating with the FTC but could not predict the outcome or timing of the investigation.