Shein is said to consider Aug 28 for Hong Kong trading debut
The fashion retailer has targeted a US$30 billion IPO valuation but has faced pushback from investors and may lower it further
Hong Kong-based fashion retailer Shein plans to commence investor orders for its IPO as early as August 20, with an anticipated debut in the city around August 28, according to sources familiar with the matter. The company, which has been seeking a US$30 billion valuation for the IPO, has faced pushback from investors and may lower its valuation further.
Existing shareholders may acquire up to half of the deal, which is expected to raise US$2 billion to US$3 billion. Shein, closely held and based in Singapore, has been striving to go public after previously attempting to do so in New York and London. The company has faced challenges, including a decline in valuation due to slowing growth, tariffs, and competition from rivals like Temu.
Shein aims to position itself as a competitor to established fast fashion brands Zara and H&M, with a target price-to-earnings ratio similar to those companies. Morgan Stanley predicts a higher net profit growth rate for Shein between 2025 and 2028 compared to Inditex and H&M. Shein's global fast fashion empire has been built on offering low-priced, trend-driven apparel directly from suppliers.
However, increased US tariffs and Middle Eastern conflicts have driven up material costs and consumer prices.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
