Shein's Hong Kong IPO priced at HK$48.56 ($6.19), raising $1.7bn and valuing the company at just over $26bn — a 75% discount to its $100bn 2022 private valuation. The offering generated lukewarm demand: the international tranche was 1.6 times oversubscribed and Hong Kong retail 4.6 times, unimpressive for a high-profile listing. Cornerstone commitments covered only 22% versus the typical 30-50%, and shares fell up to 10% on debut.

A striking feature is that $3.5bn in cash and shares may flow back to earlier Series Pre-D, D, and D+ investors who invested at valuations of $60.5bn, $98.2bn, and $64bn via anti-dilution clauses — meaning public investors' $1.7bn could be outweighed by payouts to prior backers.

Investors viewed the $26.5bn valuation as expensive, pricing Shein at twice PDD Holdings' 2026 P/E multiple based on projected 2027 earnings recovery. Concerns include slowing revenue growth, margin pressure, loss of the de minimis customs exemption forcing a shift to capital-intensive warehousing, and ongoing regulatory scrutiny. Shein denies allegations regarding labor practices and compliance.