Shein sold around 280 million shares at HKD 48.56 each, slightly below the originally planned maximum price of HKD 49.50, raising approximately HKD 13.6 billion.
Shein's Stock Price Performance Since Its IPO
Its IPO valuation is about 73.5% below the 2022 peak and represents little more than one quarter of that level. The first-day decline suggests investors remain cautious despite the substantially lower valuation.
The focus is now shifting toward whether Shein can sustain growth and defend margins as its business matures.
Revenue Growth Slows as Pressure Builds
According to figures cited by CNBC and disclosed in Shein’s listing materials, revenue rose from $38.7 billion in 2024 to $41.8 billion in 2025, an increase of about 8%. First-quarter 2026 revenue reached $9.05 billion.
Shein posted a net loss of $99 million in the quarter, compared with a profit a year earlier. The company attributed the loss mainly to fair-value remeasurement of convertible redeemable preferred shares.
At the same time, tariff and customs changes in the United States and Europe are adding pressure on growth and margins, while competition from TikTok Shop is intensifying. Its entertainment-led shopping model is challenging the gamified e-commerce approach that helped Shein and Temu expand rapidly.
Most IPO Proceeds Will Fund Expansion
According to the prospectus, Shein plans to allocate 40% of the IPO proceeds to technology and another 40% to brand awareness and global expansion. Around 80% of the capital raised will therefore be reinvested into future growth.
Based on the $1.74 billion raised, the two main allocations would amount to roughly $696 million each, while the remaining 20% is intended for corporate social-responsibility initiatives and general corporate purposes.
The Hong Kong listing also ends a long process of seeking access to public markets. Shein previously pursued IPOs in the United States and London before ultimately listing in Hong Kong. The next test will be whether the newly raised capital can translate into stronger growth and returns at a time when investors are assigning the company a far lower valuation than only four years ago.
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