Shein is seeking a $27bn valuation in a Hong Kong listing next week, valuing the fast-fashion retailer almost three quarters below its peak after previous attempts to list foundered amid pushback by regulators. The China-founded company plans to raise as much as HK$14bn ($1.8bn) in a September 1 listing. It is selling 280mn shares for HK$47.60 to HK$49.50 each, giving it a market capitalisation of HK$202bn to HK$210bn ($26bn to $27bn), according to a listing notice published by Hong Kong stock exchange on Monday.

Chinese regulators approved the online retailer's application to list in Hong Kong last month, giving the green light to an initial public offering that has been more than four years in the making. Shein's previous attempts to list in Hong Kong and the US were derailed by opposition from politicians and regulators amid scrutiny of its Chinese supply chain. The sub-$30bn valuation compares with a valuation of about $100bn that Shein reached after a private fundraising round in 2022.

The company has the option to sell an additional 42mn shares depending on demand, which could push the total raised to $2bn. The banks on the deal, led by Goldman Sachs, Morgan Stanley and JPMorgan, will collectively receive an underwriting commission of 1.5 per cent of money raised, along with a discretionary 0.75 per cent incentive fee. That could mean a fee pool of nearly $40mn before the sale of any additional shares.

Cornerstone investors took roughly a fifth of the listing and comprised mainly Shein's existing backers, including Chinese private equity firm General Atlantic and Chinese tech giant Tencent. Chinese private equity firm Boyu Capital took the largest allocation of $150mn, followed by Tiger Global and Tencent at about $50mn each.