Revolut

In total, there are likely to be fewer mega IPOs this year than assumed. However, the reasons for the delays are very different. For Shein, they are not very image-enhancing. Now it's official: On September 1, Shein will go public in Hong Kong. 77 billion dollars and be valued at 23 to 27 billion dollars. It would be the second-largest IPO in Hong Kong to date this year, after electronics giant Luxshare. Nevertheless, the IPO is far from a hype. Shein is now far from the status of a hectocorn (as IPO candidates with a valuation of more than 100 billion dollars are called).

Hardly any IPO in recent history has been blocked and postponed so often. What was the problem? Shein is struggling with problems: Revenue growth slowed in the past quarter, and due to the elimination of customs relief for cheap small packages in the US and the EU, the fast-fashion retailer has slipped into the red. In general, stricter international regulations, environmental, and customs requirements are causing problems for Shein. Its image also deters potential investors: Shein produces huge mountains of waste, as its cheap clothing made of polyester and nylon is often thrown away after only a few wears.

Its logistics are also considered climate-damaging, as the company ships millions of individual packages by air freight instead of by ship to quickly serve customers worldwide. In addition, there is criticism of working conditions in its supplier factories; even forced laborers from the Uyghur minority are said to work for Shein. Shein also has to contend with the accusation of copying other designers' designs with the help of AI. When the company, which had already been valued at 100 billion dollars in a private financing round in 2022, sought an IPO in New York in 2023/2024, American politicians and regulators objected.

The reasons were allegations of forced labor and concerns that data from Americans could be passed on to Chinese authorities. The IPO failed. So Shein tried to go public in London. But the financial market supervisory authority there also delayed approval due to human rights concerns and supply chain risks. Local trade associations and human rights groups also exerted massive political pressure, so Shein looked for an alternative. And the company, which has since moved its official headquarters to Singapore, found it in its country of origin: In mid-2026, the Chinese securities regulator CSRC granted approval for a listing in Hong Kong.

Meanwhile, the original valuation has shrunk by 75 percent. Investors no longer primarily see Shein, which has 270 million active customers worldwide, as a rapidly growing technology company, but rather as a low-margin fast-fashion retailer. The year 2026 is expected to be a strong year for IPOs, but the number of anticipated mega IPOs is likely to be lower than originally assumed. 75 trillion dollars. Both were historical highs. Of the two other expected mega IPOs, only one is likely to take place: that of the AI company Anthropic. The IPO of competitor OpenAI is likely to be delayed because CEO Sam Altman does not want to deviate from his goal of a trillion-dollar valuation.

Anthropic aims to achieve this valuation in its October IPO. In a private financing round in May, the company had already been valued at 965 billion dollars. Details of the planned IPO are expected to be announced in September. Anthropic needs the money to finance data centers and chips and is currently benefiting enormously from the AI hype; both are good reasons to go public as soon as possible. The German-French defense group KNDS plans a dual listing on the Deutsche Börse in Frankfurt and Euronext in Paris. However, the timing is uncertain.

In early July, the IPO was halted by the owners, the French state and some German owner families. They want to wait for more favorable market conditions.