HONG KONG: Fast-fashion giant Shein is seeking to raise up to US$1.8 billion in a Hong Kong initial public offering that would value the company at close to $27 billion, roughly 70 percent below its private-market peak four years ago.

The China-founded, Singapore-headquartered retailer launched the sale of 280 million shares at between HK$47.60 and HK$49.50 each, according to company filings. At the top of the range, the offering would raise HK$13.86 billion ($1.77 billion).

The IPO follows Shein's unsuccessful attempts to list in New York and London over the past four years and comes as tariffs, rising costs and growing competition weigh on its outlook.

Shein, which sells low-cost fashion to shoppers in about 160 countries, was valued at nearly $100 billion in 2022 and $64 billion in 2023 and April 2024.

"The drop in Shein's valuation largely reflects the change in prospects for the company from, say, two to three years ago when its IPO was first mooted," said Lorraine Tan, Singapore-based director of equity research for Asia at Morningstar.

"We believe interest in Shein by global investors has probably cooled as a result, leading to the reduced listing price."

Shein will announce the final IPO price on August 31 and is expected to begin trading in Hong Kong on September 1.

Cornerstone investors, led by existing shareholders Boyu, Tiger Global and General Atlantic, have subscribed for about $383 million of shares. Tencent, Greenwoods, Taikang Life and UBS Asset Management will also participate in the offering.

Shein plans to use about 80 percent of the proceeds to improve its technology and expand its brand and global presence.

The listing comes as the company's growth slows. Shein said first-half 2026 revenue growth is expected to be broadly in line with the 1.1 percent recorded in the first quarter, while its operating margin is expected to be slightly lower.

The company attributed the pressure to new European import charges, pricing pressure and weaker demand in the Middle East linked to the Iran war.

Shein also faces higher trade costs in the United States following the removal of an import-duty exemption for small packages. The company said the change directly contributed to a 14.3 percent decline in U.S. revenue during the first quarter.

The IPO is the largest new share sale in Hong Kong in 2026, surpassing autonomous-driving company Momenta Global's $751 million offering in July.