Shein’s long-awaited Hong Kong initial public offering (IPO) is attracting interest from institutional investors in the UAE and wider GCC, even as the fast-fashion company heads to the market at a valuation far below its pandemic-era peak.
Market analysts tracking the offering said institutional demand in the Gulf appears stronger than retail interest. Shein’s IPO order book has already been reported as fully covered, with participation from existing shareholders, China-focused funds and multi-strategy investors. Cornerstone commitments of around $383 million have also been secured from investors including Boyu Capital, Tiger Global and General Atlantic.
Shein already has connections with some of the Gulf’s biggest institutional investors. Abu Dhabi’s Mubadala is an existing investor in the company, with Mubadala-linked entities among investors eligible for compensation under arrangements tied to the IPO valuation. Saudi Arabia’s Public Investment Fund (PIF) has also previously featured among Shein’s backers.
According to analysts, these existing relationships underline the level of institutional interest in the region. However, they caution that strong participation from funds and family offices does not necessarily mean there is broad retail demand among GCC investors.
Access is another important factor. Since Shein is listed exclusively in Hong Kong, investors cannot subscribe through UAE or Saudi stock-market accounts such as DFM, ADX or Tadawul. Larger institutions and family offices can participate through international placements, while individual investors depend on whether their broker offers access to the Hong Kong market.
Shein opened its IPO on August 24, offering around 280 million Class B shares at HK$47.60 to HK$49.50 each. At the top end of the range, the company would be valued at roughly $27 billion and could raise around $1.8 billion. Trading is expected to begin on September 1.
That valuation represents a dramatic fall from Shein’s private-market peak of almost $100 billion in 2022. The discount has become one of the main attractions for investors evaluating the IPO.
However, the lower valuation also reflects growing challenges. Shein’s revenue growth slowed from 41.1% in 2023 to about 8% in 2025 and only 1.1% in the first quarter of 2026. The company also reported a $99 million net loss in Q1 2026.
“Institutional interest looks stronger than retail interest in the GCC, with the latest global order-book data suggesting investors remain willing to participate at the significantly reduced valuation,” said Vijay Valecha, Chief Investment Officer at Century Financial, while cautioning that broad-based retail appetite from the region remains largely unproven.
Shein continues to face pressure from US tariffs, changing import rules, higher costs and competition from Temu and Amazon. Its earlier attempts to list in New York and London also failed to materialise amid regulatory and geopolitical concerns.
For GCC investors, analysts say the IPO is therefore better viewed as a valuation opportunity with significant risks, rather than a straightforward high-growth story. Shein’s ability to rebuild revenue growth, protect margins and expand into new markets will be crucial after its Hong Kong debut.