Shein Seeks to Be Valued Between $30 And $40 Billion For Its August Hong Kong IPO

According to three people familiar with the situation, Shein is aiming for a valuation of $30 billion to $40 billion in a Hong Kong initial public offering (IPO), which the online fast-fashion retailer intends to launch as early as mid-August.

According to one person, Shein began holding pre-deal investor meetings last week. According to two of the people, who all declined to be named because the arrangements are classified, the agreement may be announced in the middle to end of this month.

Shein’s worth peaked at $98.2 billion in 2022 but dropped to $64 billion in 2023 and April 2024 in private financing rounds as growth slowed and external constraints increased. The valuation objective represents a significant reset for Shein.

According to the persons, the launch schedule and the IPO valuation target—which has not been previously disclosed—are not yet final and could change in response to input from investor meetings.

The IPO size, offer price, and listing schedule have not been made public by Shein. A request for comment from Reuters was not immediately answered by the Chinese-founded corporation with its headquarters in Singapore.

Shein’s draft IPO prospectus from last month revealed that the company had a $99 million quarterly loss as a result of declining sales following the U.S. removal of a small package import duty exemption and a significant one-time accounting charge.

A $328 million fair-value charge on convertible redeemable preferred shares after an accounting reform contributed to the loss, but slower revenue growth and lower core profitability show the company’s mounting problems.

Reduced profit margins have also sparked worries that Shein’s rapid growth is being hampered by increased trade costs, stricter regulations, and heightened competition in international e-commerce.

According to the first source, Shein, which is well-known for selling $5 gowns and $10 jeans to customers in around 160 countries, is putting more emphasis on a price that can sustain the shares after the listing than on maximizing valuation.