Shein Global Holdings Ltd is seeking to raise as much as HK$13.9 billion ($1.8 billion) in its Hong Kong initial public offering, according to Bloomberg.

The fast-fashion retailer is offering 280 million shares at HK$47.6 to HK$49.5 each, according to a filing to the stock exchange Monday. That would give it a market capitalization of about $25.7 billion to $26.8 billion, with the company due to debut on the Hong Kong stock exchange Sept 1.

Such a valuation would make Shein one of the top fashion and apparel companies globally — behind Sweden’s Hennes & Mauritz AB, which is worth about $31 billion. Still, the valuation is a fraction of the almost $100 billion Shein commanded in 2022 after a period of explosive growth fueled by online shoppers during the pandemic.

Shein’s efforts to bolster its valuation and lure investors have included cushioning losses for late-stage backers. Bloomberg reported Aug 3 that it considered lowering the cost for backers that came in at a valuation of up to $64 billion. The move would help lower the cost base from those investors to a roughly $40 billion valuation, closer to the planned IPO.

Shein’s IPO prospectus shows it swung to a loss of $99 million in the first quarter of 2026 from a $395 million profit a year earlier, while revenue has also been declining.

Cornerstone investors in the IPO include Boyu Capital, Tiger Global, General Atlantic, Tencent Holdings Ltd and UBS AM Singapore. Boyu’s is the biggest commitment, at $150 million, while Tiger Global is $53 million and General Atlantic and Tencent are both $50 million, according to terms of the deal.

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Shein plans to use the IPO proceeds to enhance technology such as inventory management systems, invest in marketing to improve its image globally and expand brand awareness, promote corporate responsibility and general corporate purposes, it said.

Shein built its fast-fashion empire by offering ultra-cheap, trend-driven clothing, a model that encouraged shoppers to buy regular “hauls” and post them on social media.

The formula has come under pressure as US tariffs and the war in the Middle East have led to higher material costs and increased prices for consumers. Cost-of-living pressures globally have also prompted people to curb discretionary spending, according to Bloomberg.

Shareholders also include IDG Capital, Mubadala Investment Co, Coatue Management, and HSG — formerly known as Sequoia China. Those who invested in its later rounds are set to receive a combination of cash payouts and free additional shares to help lower the cost base for them, the prospectus said.

Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co are joint sponsors of Shein’s IPO.