Shein Prices Hong Kong IPO at Midpoint of Range, Raises $1.74 Billion

FILE PHOTO: A view of the reception of fast-fashion brand Shein's office in Sao Paulo, Brazil, December 15, 2025. REUTERS/Jorge Silva/File Photo
FILE PHOTO: A view of the reception of fast-fashion brand Shein's office in Sao Paulo, Brazil, December 15, 2025. REUTERS/Jorge Silva/File Photo
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Shein Prices Hong Kong IPO at Midpoint of Range, Raises $1.74 Billion

FILE PHOTO: A view of the reception of fast-fashion brand Shein's office in Sao Paulo, Brazil, December 15, 2025. REUTERS/Jorge Silva/File Photo
FILE PHOTO: A view of the reception of fast-fashion brand Shein's office in Sao Paulo, Brazil, December 15, 2025. REUTERS/Jorge Silva/File Photo

Shein on Monday priced its initial public offering in Hong Kong at the midpoint of its marketed range, raising HK$13.60 billion ($1.74 billion) from the share sale.

The online fast-fashion retailer offered 280 million shares for the listing at HK$48.56 per share, below the maximum offer price of HK$49.50 apiece announced last week, Reuters reported.

The Hong Kong public offering portion was subscribed 5.63 times, while the international offering was subscribed 2.59 times, Shein said in a stock exchange filing.

The long-awaited market debut comes after the online retailer, known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, scrapped plans to list in New York and London.

Shein in an exchange filing last week said that most of the funds from the offering would be utilised to improve its technology and increase brand awareness and global presence.

The Singapore-based, Chinese-founded company's shares are slated to debut on the Hong Kong stock exchange on Tuesday.



France Takes Aim at Ultra-Fast Fashion with New Levy

The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. (Reuters)
The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. (Reuters)
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France Takes Aim at Ultra-Fast Fashion with New Levy

The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. (Reuters)
The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. (Reuters)

France will from Tuesday impose a fee on ultra-fast fashion items that will eventually reach almost 20 euros per garment, as the government targets major Asian e-commerce platforms including Shein.

The levy follows legislation passed by the French parliament in June to regulate so-called "ultra-fast fashion" companies, known for selling large volumes of lower quality clothing at rock-bottom prices.

It is part of a push to rein in Asian e-commerce giants including Shein, Temu and AliExpress, which have exploded in popularity in France in recent years.

"The harmful effects of ultra-fast fashion on our environment and our economy are well known and documented," said Mathieu Lefevre, the minister for ecological transition on Friday as details of the measure were published.

Under the legislation, ultra-fast fashion will be determined according to two criteria: the volume of clothing placed on the market and the cost of repairing garments relative to their purchase price.

The per-item fee will vary on a set scale according to how each product scores on both these standards.

In 2026, companies will pay fines such as a 50-cent levy on underwear falling into the ultra-fast fashion category, rising to two euros for T-shirts, nine euros for jeans and 12 euros for a jacket.

The levy could reach up to 19.50 euros ($22.60) per item by 2030, though the cap remains at 50 percent of the product's pre-tax price.

A tool to collect data independently, rather than relying solely on companies' own declarations, is under development, Lefevre's office said.

Shein, which on Monday was valued at $26.3 billion in its long-awaited Hong Kong initial public offering, declined to comment when contacted by AFP.

Temu and AliExpress did not immediately respond to requests for comment.

The measure has faced criticism over which retailers it will affect.

In July, Lefevre's office said the levy would not apply to retailers such as H&M or Zara, prompting some to say that the measure appeared to spare European and French companies.

French officials have made repeated statements that they view Shein, Temu and AliExpress as driving the surge in ultra-fast fashion.

The European Commission had also raised questions over whether the legislation complied with EU law, but Lefevre's office said those concerns had been "dispelled" and the measure was not expected to be blocked.

China meanwhile warned in July of potential retaliation over the French law, slamming the regulation as "discriminatory" and in violation of trade principles.

Imports of small parcels from China into the EU have already fallen by around 30 to 40 percent since a separate three-euro EU levy on such shipments came into force on July 1, according to the French government.


Shein Valued at $26.3 Bn in Hong Kong Market Debut

A woman walks past the logo of Shein as seen outside of a building in Guangzhou, in the province of Guangdong, China, 26 August 2026. (EPA)
A woman walks past the logo of Shein as seen outside of a building in Guangzhou, in the province of Guangdong, China, 26 August 2026. (EPA)
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Shein Valued at $26.3 Bn in Hong Kong Market Debut

A woman walks past the logo of Shein as seen outside of a building in Guangzhou, in the province of Guangdong, China, 26 August 2026. (EPA)
A woman walks past the logo of Shein as seen outside of a building in Guangzhou, in the province of Guangdong, China, 26 August 2026. (EPA)

Fast-fashion giant Shein raised $1.7 billion in its long-awaited Hong Kong initial public offering, valuing the online retailer at around $26.3 billion, the company said Monday.

Known for its ultra-low prices and rapidly produced clothes, the Chinese-founded behemoth's stock sale in the Asian financial hub comes after IPO plans for New York and London were derailed under regulatory scrutiny.

The online retailer offered 280 million shares on the market at HK$48.56 apiece, Shein said in a filing to the Hong Kong Stock Exchange, below the maximum announced offer price of HK$49.50.

The platform surged in popularity during the Covid-19 pandemic, conquering the global fast-fashion market by catering to young customers through social media.

But the company now faces slowing growth and increasing regulatory pressure in Europe and the United States, its largest markets.

The $26.3 billion valuation is well below the $98.2 billion it commanded during private fundraising rounds in 2022.

- 'Geopolitical risks' -

Shein has faced scrutiny over its environmental footprint and allegations of human rights violations, and faces growing competition from Chinese low-cost retailers like Temu and AliExpress.

Executive chairman Donald Tang told AFP last year that the company had "zero tolerance" for forced labor.

Its shares are to begin trading in Hong Kong on Tuesday.

Shein said it would use the funds to upgrade its technological capabilities and boost its international presence.

Founded in China and now headquartered in Singapore, Shein finally won Beijing's approval last month to make its initial public offering in Hong Kong.

Shein reported a full-year net profit of $2.06 billion last year but recently swung to a $99 million quarterly loss as the United States scrapped an import duty exemption on small packages.

In a similar move, the European Union last month imposed a duty of three euros ($3.50) per item for packages valued at less than 150 euros.

And France from Tuesday will impose a fee on ultra-fast fashion items that could eventually reach almost 20 euros per garment, as the government targets major Asian e-commerce platforms including Shein.

"The decline in market perception of Shein reflects slower revenue growth amid a slew of geopolitical challenges as well as increased competition," Lorraine Tan, Morningstar's Asia director of equity research, said in a note.

"While sales in Asia are helping to offset a fall in US revenue, we're probably looking at a period of single-digit revenue growth for the company, and this maturing outlook is likely to limit investor excitement. On top of this, tariff and other geopolitical risks remain," she said.


Gap Climbs After Leadership Change at Old Navy, Profit Forecast Raise

A person shops at a Gap store in Times Square in New York City, US, November 28, 2024. (Reuters)
A person shops at a Gap store in Times Square in New York City, US, November 28, 2024. (Reuters)
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Gap Climbs After Leadership Change at Old Navy, Profit Forecast Raise

A person shops at a Gap store in Times Square in New York City, US, November 28, 2024. (Reuters)
A person shops at a Gap store in Times Square in New York City, US, November 28, 2024. (Reuters)

Gap's shares jumped as much as 24.1% to a four-month high, after the apparel retailer named industry veteran Michael Francis as CEO of Old Navy, a move aimed at reinvigorating the brand in a challenging spending environment.

Old Navy, Gap's biggest brand, has struggled to gain traction in select women's apparel categories in recent quarters, a key hurdle in the company's turnaround.

Since CEO Richard Dickson took charge in 2023, Gap has revamped its leadership and ‌marketing, boosting Gap ‌and Banana Republic, but Old Navy continues ‌to ⁠lag.

"It is true ⁠that the family demographic that Old Navy serves is under pressure, but Old Navy did not give them enough reasons to buy," said Neil Saunders, managing director of GlobalData, adding that the weakness points to a broader problem that Gap can no longer pass off as a "modest range misstep".

Gap shares were trading 15% ⁠higher at $23.95, and could add about $1.14 billion to ‌the company's market value if gains ‌hold.

Some retailers are bringing new leaders on board to revive their ‌struggling brands. Tapestry's Kate Spade last month appointed renowned designer Jonathan ‌Saunders as executive creative director.

"The appointment of a new Old Navy leader underscores management's focus on stabilizing performance at the company's largest banner," Jefferies analysts said in a note.

Francis joined Gap in March as Old ‌Navy's chief customer officer. He brings over four decades of marketing, commercial and business transformation experience, ⁠including roles ⁠at Target and Walmart.

Gap lifted its annual profit forecast after topping quarterly estimates. However, it narrowed its fiscal 2026 sales growth target, citing economic uncertainty.

Its quarterly comparable sales grew about 10%, while at Old Navy they were down 4%, the first decline in 12 quarters.

The company's forward 12-month price-to-earnings ratio stood at 8.33, compared with American Eagle Outfitters' 8.94 and Urban Outfitters' 11.93.

"Gap should be able to end the full fiscal year on a positive sales note, but it needs to get the big engine of Old Navy whirring again to keep advancing at a convincing pace," Saunders said.