What Shein’s $27bn IPO means for Mubadala

Shein priced at up to $27bn in Hong Kong IPO, leaving Mubadala with a significant paper loss on its 2023 investment

Chinese fast-fashion group Shein is set to list in Hong Kong on September 1 with a valuation of up to $27 billion — less than half the $64 billion valuation at which Abu Dhabi’s sovereign investor Mubadala took a stake in 2023. The company, which raised $2 billion in May 2023 with Mubadala among the backers alongside SoftBank and General Atlantic, has seen its headline valuation contract sharply amid geopolitical headwinds, tariff changes and a post‑Covid slowdown in core markets.

"But I did not invest in the Shein pre-IPO deal, originally targeted for a New York listing in November 2023, because I did not believe a $100 billion valuation was credible," investor and commentator Matein Khalid wrote, describing how Dubai brokers demanded "a 15 percent upfront premium from private investors for access to Shein’s cap table."

Shein’s rise was rapid: revenues climbed from $16 billion in 2021 to $32 billion in 2023, and the company reported global revenues of $40 billion and $2 billion in net profit in 2025. Still, the Hong Kong IPO is being priced at roughly 13.5 times trailing earnings — a discount to rival Inditex’s multiple of around 20 — reflecting increased risk and slower recent performance. Shein moved to an operating loss in the first half of 2026 and full-year profits for 2026 could fall to about $1.65 billion, industry estimates say.

• Shein raised $2 billion in May 2023; Mubadala, SoftBank and General Atlantic were participants.
• Existing investors have subscribed for 50% of the $2 billion Shein hopes to raise in Hong Kong; new investors include UBS, BOYU and several PRC venture capital funds.
• Key financials: $16bn revenue (2021), $32bn (2023), $40bn revenue and $2bn net profit (2025); potential 2026 profit drop to $1.65bn.
• User metrics and targets: 200 million monthly active users today, with a bullish path to 500 million by 2029 cited by some analysts.

The sharp recalibration of value is the product of multiple shocks. Regulatory and political resistance stalled a planned New York listing — including a push in Washington related to alleged use of forced labour in Xinjiang and national security disclosure concerns — and China’s securities regulator later blocked a planned London float. Trade tensions and policy shifts also played a role: the removal of the US $800 de‑minimis exemption, punitive tariffs, the geopolitical fallout from the 2026 war against Iran and higher inflation pressured margins and logistics costs. Competitive pressure from PDD’s Temu and a slowdown in US and Chinese consumer spending further dented momentum.

For Mubadala, the Hong Kong IPO provides an exit route but not an immediate recovery. Khalid notes the fund "could still be at least two years away from breaking even." Positive offsets exist: Shein has re‑entered India via a partnership with Mukesh Ambani’s Reliance Retail, is gaining traction among Gen Z consumers in Southeast Asia, Africa and Latin America, and operates a flexible supply network of some 7,500 contract factories in China. If user growth and AI-driven personalisation push monthly active users toward 500 million by 2029, some forecasters — including Morgan Stanley — see upside to a $54 billion valuation over time.

Market participants will watch pricing on August 31 and early trading in September for clues on whether international investors are prepared to underwrite a recovery in Shein’s valuation and deliver Mubadala a path back to profitability on its 2023 stake.