From $100 billion to $27 billion: What happened to CNOOC?

The market value of the fast-fashion company Shein has fallen by approximately 70% compared to its peak in the private market four years ago, a sharp decline that reflects the pressures the company faces due to tariffs, intensifying competition, rising costs, and slowing growth prospects. Shein is seeking to raise up to HK$13.86 billion (equivalent to US$1.77 billion) through its initial public offering on the Hong Kong Stock Exchange, after launching a sale of 280 million shares at a price range of HK$47.60 to HK$49.50 per share. At the upper end of the price range, the company’s valuation stands at just around US$27 billion, compared to approximately US$100 billion in 2022, when Shein reached its highest private-market valuation, meaning it has lost roughly US$73 billion in value over four years.

The steep drop in valuation comes as the company faces mounting operational pressures. Its profits have been affected by tariffs, while intensified competition from low-cost e-commerce and fashion retailers has further squeezed profit margins. Rising costs have also cast a shadow on the company’s growth rates and future plans, prompting investors to adopt a more conservative assessment of its business. Initially, Shein had hoped to achieve a valuation between US$30 billion and US$40 billion when it began investor meetings ahead of the listing.

The Hong Kong offering follows years of stalled attempts by the company, which was founded in China and is headquartered in Singapore, to list on major global financial markets. Over the past four years, it scrapped plans to list on the New York and London stock exchanges before turning to Hong Kong. Shein is scheduled to announce the final offering price on August 31, with its shares set to begin trading on September 1, marking a new chapter as a listed company after a long journey of IPO attempts, albeit at a valuation roughly 70% lower than its historical peak.