Shein is seeking commitments from major institutional investors including Boyu Capital and UBS as it prepares for its long-awaited Hong Kong initial public offering, according to people familiar with the matter. The effort to secure cornerstone investors comes as the fast-fashion giant moves closer to a listing that could become one of the city’s most closely watched IPOs this year.
The company is expected to begin taking orders from investors around Aug. 20, with a potential Hong Kong trading debut around Aug. 28, according to earlier reports.
Cornerstone investors are particularly important in large Hong Kong listings because they commit to purchasing shares before the IPO is completed. Their participation can provide greater certainty over the fundraising and signal confidence in the company to other investors.
For Shein, attracting well-known institutional investors is especially significant because the company is entering public markets at a much lower valuation than the one it commanded during its private-market peak.
Shein was valued at about $100 billion in a 2022 fundraising round. Its planned Hong Kong IPO, however, is reportedly targeting a valuation of roughly $25 billion to $28 billion, according to people familiar with the offering. That would represent a dramatic reduction from its previous private-market valuation.
The lower valuation reflects the difficult environment Shein now faces.
The company built its global business by offering inexpensive clothing and rapidly introducing new designs through an online-first model. Its ability to use data analytics and a large network of suppliers allowed it to respond quickly to changing consumer preferences and compete with established retailers.
But the market has become more challenging.
Growth has slowed sharply, while governments in major markets have increased scrutiny of low-cost imports and e-commerce platforms. Higher tariffs and changes to customs rules have also increased costs for companies whose business models depend heavily on inexpensive cross-border shipments.
Shein’s revenue growth illustrates the change.
Revenue increased 41.1% in 2023 and 20.7% in 2024, but growth slowed to only 8% in 2025, when revenue reached about $41.8 billion. In the first quarter of 2026, revenue growth slowed further to roughly 1.1%.
That deceleration makes the IPO valuation particularly important.
Investors are no longer being asked to value Shein primarily on the extraordinary growth rates that helped justify its $98.2 billion valuation several years ago. Instead, they must assess whether the company can maintain profitability and regain growth while facing higher trade costs, regulatory scrutiny and intensifying competition.
The company recorded net income of about $2.06 billion in 2025, meaning a valuation around $25 billion would put the company at roughly 12 times earnings.
On the surface, that valuation is considerably more conservative than Shein’s previous private-market price.
But a lower multiple does not automatically make an IPO attractive.
Investors still need to determine whether earnings can grow from current levels. If revenue remains nearly flat, the company may have limited ability to expand profits without improving margins or cutting costs.
That is one reason cornerstone investors could play an important role in the offering.
Boyu Capital is a prominent China-focused investment firm with experience investing in major consumer and technology businesses. UBS, meanwhile, brings the credibility of a major global financial institution and deep relationships with international investors.
Their participation could help Shein demonstrate that sophisticated investors are willing to support its public-market transition despite the company’s reduced valuation.
Cornerstone investors generally agree to hold their IPO shares for a specified period, providing some stability around the offering. Their presence can also encourage other institutional investors to participate because it reduces concerns that the deal could struggle to attract demand.
For Shein, however, securing cornerstone investors is only one part of the challenge.
The company must convince public-market investors that its business model remains sustainable as trade rules change.
The United States has become particularly important to that discussion.
Shein’s business historically benefited from rules that allowed low-value packages to enter the US with limited customs duties. Changes to those rules have increased costs and weakened one of the advantages that helped the company offer extremely low prices.
That could force Shein to change its supply-chain model.
The company has already been increasing its focus on localized manufacturing and distribution in markets outside China. Expanding warehouses and supplier networks closer to customers could reduce shipping times and help mitigate tariff exposure.
But localization also adds costs.
One of Shein’s biggest advantages has been its ability to combine low production costs with efficient cross-border logistics. Building more local infrastructure could improve resilience but potentially reduce the cost advantage that made its model so successful.
The company is therefore facing a strategic trade-off.
It needs to become more resilient to trade restrictions without losing the low-cost structure that attracts consumers.
Competition is another major issue.
Temu, operated by PDD Holdings, has expanded rapidly in international markets with a similar low-price model. Traditional retailers are also responding more aggressively to the rise of ultra-fast fashion by improving their online platforms and increasing the speed with which they introduce new products.
That means Shein can no longer rely solely on being faster and cheaper.
It needs to maintain consumer loyalty while managing rising regulatory and logistics costs.
The company also faces continuing scrutiny over its supply chain and labor practices. These issues have attracted attention from regulators and politicians in the US and Europe and could affect how institutional investors evaluate the company.
For public investors, governance and reputational risks matter more than they did when Shein was privately held.
A listed company must provide regular financial disclosures and face greater scrutiny from shareholders, regulators and analysts.
That could ultimately benefit Shein by increasing transparency and strengthening its corporate structure. But it also means weaknesses that were previously less visible can have a direct effect on its share price.
The Hong Kong listing itself represents an important milestone.
Shein has spent years pursuing a public offering after difficulties surrounding a potential US listing. Hong Kong offers the company access to Asian capital markets while maintaining its status as an internationally oriented consumer brand.
The listing could also make Shein more attractive to investors familiar with Chinese consumer and technology companies.
However, the company’s international structure makes its story unusual.
Shein was founded in China but is now headquartered in Singapore and sells products to consumers across roughly 160 countries. Its manufacturing and supplier relationships remain heavily connected to China, while its customer base is overwhelmingly international.
That structure has helped the company expand rapidly but has also placed it at the center of geopolitical and trade tensions.
The IPO therefore represents more than a fundraising event.
It is also a test of whether global investors are willing to assign a significant valuation to a company whose business is deeply connected to China but whose revenue depends on consumers around the world.
The sharp reduction from the 2022 valuation suggests that investors are demanding a more realistic assessment of Shein’s prospects.
The company can still argue that its scale is a major advantage.
With tens of billions of dollars in annual revenue, a huge customer base and a sophisticated data-driven supply chain, Shein remains one of the world’s largest online fashion retailers.
Its technology infrastructure allows it to test products rapidly, identify emerging trends and adjust production based on actual consumer demand.
That model could remain highly competitive even as the company adapts to new trade rules.
The question is how much growth remains.
If Shein can return to double-digit revenue expansion while maintaining healthy margins, its reduced IPO valuation could eventually look attractive.
If growth remains close to zero, investors may view even a $25 billion valuation as difficult to justify.
The involvement of Boyu and UBS could help provide an initial vote of confidence, but cornerstone participation cannot remove the underlying risks.
Ultimately, Shein’s public-market performance will depend on whether the company can demonstrate that its business model works under a very different set of conditions from those that existed when it reached its nearly $100 billion valuation.
For now, the planned Hong Kong IPO represents a reset.
Shein is moving from a period when investors rewarded explosive growth and private-market expansion toward a stage where profitability, cash generation, regulatory resilience and sustainable growth will matter much more.
Securing major cornerstone investors could make the offering easier to complete and strengthen initial demand.
But the harder task begins after the listing.
Shein will have to convince public shareholders that a company once valued at almost $100 billion can rebuild its growth story at a substantially lower starting point.
