Shein plans to launch Hong Kong IPO as soon as next Wednesday, sources say

Online fast-fashion retailer Shein is set to launch its Hong Kong initial public offering (IPO) as early as next Wednesday, according to sources. The Singapore-based company has been actively marketing the share offering to investors this week, according to two sources familiar with the matter. Shein is aiming for a valuation range of $30 billion to $40 billion in the IPO, as reported by Reuters last week.

The long-awaited IPO comes amid slowing revenue growth and weaker core earnings, which have raised concerns about the company's breakneck expansion being hindered by higher trade costs, tighter regulatory scrutiny, and intensifying competition in the global e-commerce space. Shein, famous for offering affordable clothing such as $5 dresses and $10 jeans to customers in approximately 160 countries, reported a $99 million quarterly loss after the U.S. removed an import duty exemption on small packages and incurred a $328 million fair-value charge on convertible redeemable preferred shares due to an accounting change.

The target valuation for the IPO marks a significant shift from Shein's private fundraising rounds, which valued the company at $98.2 billion in 2022, $64 billion in 2023, and $64 billion in April 2024.