Known for its ultra-low prices and rapidly produced clothes, the Chinese-founded behemoth's stock sale in the Asian financial hub comes after IPO plans for New York and London were derailed under regulatory scrutiny.
The online retailer offered 280 million shares on the market at HK$48.56 apiece, Shein said in a filing to the Hong Kong Stock Exchange, below the maximum announced offer price of HK$49.50.
The platform surged in popularity during the Covid-19 pandemic, conquering the global fast-fashion market by catering to young customers through social media.
But the company now faces slowing growth and increasing regulatory pressure in Europe and the United States, its largest markets.
The $26.3 billion valuation is well below the $98.2 billion it commanded during private fundraising rounds in 2022.
- 'Geopolitical risks' -
Shein has faced scrutiny over its environmental footprint and allegations of human rights violations, and faces growing competition from Chinese low-cost retailers like Temu and AliExpress.
Executive chairman Donald Tang told AFP last year that the company had "zero tolerance" for forced labour.
Its shares are to begin trading in Hong Kong on Tuesday.
Shein said it would use the funds to upgrade its technological capabilities and boost its international presence.
Founded in China and now headquartered in Singapore, Shein finally won Beijing's approval last month to make its initial public offering in Hong Kong.
Shein reported a full-year net profit of $2.06 billion last year but recently swung to a $99 million quarterly loss as the United States scrapped an import duty exemption on small packages.
In a similar move, the European Union last month imposed a duty of three euros ($3.50) per item for packages valued at less than 150 euros.
And France from Tuesday will impose a fee on ultra-fast fashion items that could eventually reach almost 20 euros per garment, as the government targets major Asian e-commerce platforms including Shein.
"The decline in market perception of Shein reflects slower revenue growth amid a slew of geopolitical challenges as well as increased competition," Lorraine Tan, Morningstar's Asia director of equity research, said in a note.
"While sales in Asia are helping to offset a fall in US revenue, we're probably looking at a period of single-digit revenue growth for the company, and this maturing outlook is likely to limit investor excitement. On top of this, tariff and other geopolitical risks remain," she said.
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