Exclusive-Shein eyes company valuation of around $25 billion in Hong Kong IPO, sources say

Online fast-fashion retailer Shein is reportedly aiming for a company valuation of around $25 billion in its planned Hong Kong IPO, according to sources. This significant reduction from its previous share sale valuation of nearly $100 billion four years ago highlights the challenges faced by Shein as its growth prospects slow. The company, founded in China in 2012 and known for its affordable prices across 160 countries, is preparing to launch its much-anticipated IPO later this week.

Shein plans to issue up to 8% of its total shares, resulting in an offering size of up to $2 billion. The lower valuation target, ranging from $25 billion to $28 billion, reflects the impact of tougher regulatory scrutiny, increased competition, and slower growth in the e-commerce sector. The company's valuation has been further weighed down by a recent quarterly loss, a significant accounting charge, and concerns over its ability to regain the high growth rates that justified its $98.2 billion valuation in a 2022 fundraising round.