Shein plans to launch Hong Kong IPO as soon as Aug 19, sources say
Shein is reportedly targeting a valuation between US$30 billion and US$40 billion in the IPO.
HONG KONG - Shein, the online fast-fashion retailer, intends to launch its Hong Kong initial public offering (IPO) as early as August 19, according to two sources familiar with the matter. The Singapore-based company has been marketing the share offering to investors this week, one source revealed, along with a third source knowledgeable about the marketing plans.
Shein is looking to raise a valuation ranging from US$30 billion (S$38.4 billion) to US$40 billion for the IPO, Reuters reported last week. However, the company did not immediately respond to a request for comment from Reuters. The sources, who wished to remain anonymous as the information was confidential, declined to provide further details.
The highly-anticipated float occurs amid slowing revenue growth and weaker core earnings for Shein, as well as shrinking margins that have raised concerns about the company's rapid expansion. Heightened trade costs, tight regulatory scrutiny, and increased competition in the global e-commerce market have also contributed to these issues.
The retailer, famous for offering products like $5 dresses and $10 jeans to shoppers in approximately 160 countries, reported a US$99 million quarterly loss after the US removed an import duty exemption on small packages and a $328 million fair-value charge on convertible redeemable preferred shares due to an accounting change.
The company's target valuation for the IPO represents a significant turnaround from its private fundraising rounds, which valued Shein at US$98.2 billion in 2022, falling to US$64 billion in both 2023 and April 2024, as reported by Reuters.
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