Global fast-fashion retailer Shein is targeting a valuation of $30 billion to $40 billion for its planned initial public offering (IPO) in Hong Kong, with the share sale expected to launch as early as mid-August, according to three people familiar with the matter.
The proposed valuation and launch schedule remain under discussion and could change depending on investor feedback from a series of meetings that began last week. The sources requested anonymity because the listing plans are confidential.
The expected valuation represents a significant decline from Shein’s peak private market value. The company was valued at $98.2 billion during a funding round in 2022 before falling to $64 billion in both 2023 and 2024 as growth slowed and market conditions became more challenging.
People familiar with the process said the company is placing greater emphasis on ensuring a stable post-listing share performance rather than pursuing the highest possible valuation. Some prospective cornerstone investors are reportedly advocating for a valuation closer to $30 billion to $32 billion, reflecting a more cautious view of the retailer’s current outlook.
As part of its IPO preparations, Shein has held meetings with institutional investors in New York, Boston, and San Francisco to gauge demand ahead of the offering.
Headquartered in Singapore but founded in China in 2012, Shein operates in approximately 160 countries, offering low-cost fashion products ranging from dresses to denim. The company has yet to officially disclose the IPO size, pricing, or final listing timetable.
Financial documents submitted with its draft Hong Kong prospectus revealed that Shein recorded a $99 million quarterly loss, reversing previous profitability. The decline was driven by slower sales following the U.S. government's decision to remove duty-free treatment for certain low-value imports, along with a $328 million accounting-related charge tied to the valuation of convertible preferred shares.
Market analysts say investor caution is being driven by both weaker financial performance and increasing uncertainty surrounding Shein’s business model, which relies heavily on shipping low-value parcels directly to consumers.
Kenny Ng, a securities strategist at Everbright Securities International, said the reduced valuation primarily reflects concerns over declining earnings and the potential impact of evolving tariff policies on cross-border e-commerce. However, he added that there appears to be limited room for the company's valuation to fall much further.
Shein has also faced mounting pressure from rising trade costs, stricter regulatory oversight, and intensifying competition in the global online retail market. Slower revenue growth and shrinking profit margins have raised questions about whether the company can maintain the rapid expansion that made it one of the world's largest fast-fashion retailers.
After unsuccessful attempts to pursue listings in New York and London, Shein is now moving forward with its Hong Kong IPO after securing support from Chinese regulators, marking a key step in one of the year's most closely watched public offerings.