Shein launches Hong Kong public offering with its efficiency model in focus
Shein launched its Hong Kong public offering on August 24, aiming to raise up to USD 1.8 billion by listing on the Main Board of the Hong Kong Stock Exchange on September 1. The company is offering approximately 280 million Class B shares globally at a maximum price of HKD 49.5 (USD 6.3) per share. Investor demand fully covered the Hong Kong offering as of August 25. Shein reported net revenue of USD 41.8 billion and net profit of USD 2.064 billion in 2025, serving 273 million active customers with over two million apparel styles. The company is also expanding its business by opening parts of its supply chain to global brands.
Shein's Hong Kong IPO highlights its supply chain efficiency as a core differentiator, particularly its LATR (large-scale automated test and reorder) system. This model allows for small initial orders and rapid reordering, achieving an inventory turnover of 36 days in 2025, significantly faster than competitors like Zara (71 days) and Uniqlo (114 days). This efficiency underpins its profitability, with operating income rising 76.7% to USD 1.707 billion in 2025, even as revenue growth moderated to 8%. The company's expansion beyond fashion retail, through programs like Shein Xcelerator and opening its supply chain to external brands, suggests a strategic shift towards becoming a fashion industry infrastructure provider. This move generated about USD 580 million in combined revenue for 20 brands in 2025, with an average first-year sales growth of 190%. For Hong Kong, Shein's listing reinforces the city's role as a major financial hub for fast-growing Asian tech and e-commerce companies, despite global economic uncertainties.
