Shein cuts Hong Kong IPO valuation target to $25 billion

Shein is aiming for a $25 billion valuation for its Hong Kong IPO, down from its 2022 funding round valuation of $98.2 billion, according to Reuters. Two sources suggest a $25 billion figure is most likely, while a third claims the range could be $25 billion to $28 billion. The new target is below the initially reported $30 billion to $40 billion range.

If the valuation is $25 billion, Shein's gross proceeds would be up to $2 billion, floating up to 8% of its shares. With a 2025 net income of $2.06 billion, the $25 billion market cap would have a price-to-earnings multiple of around 12. Revenue growth has slowed significantly, from 41.1% in 2023 to just 8% in 2024, as tariff-related sales declines in the U.S. and Europe, its largest market, impact the business.

Shein warned in IPO filings that the tariff-driven sales decline could spread to Europe, accounting for 35% of 2025 revenue. The company has shifted most of the additional tariff burden onto consumers through price increases since May 2025. U.S. revenue fell more than 3% from 2024 to 2025 and declined 14% in the most recent first quarter compared to the same period a year earlier.

In the first quarter of 2026, Shein reported a $99 million net loss, a reversal from the $395 million profit in the same period a year earlier, and also incurred $328 million in losses related to the fair value of its convertible shares. Early investors face financial consequences if the final listing price is below agreed levels, per Shein's prospectus.

Shein's route to a public listing has included failed attempts at listings in New York and London before receiving approval from Chinese regulators on July 10.