Shein is said to target up to US$27 billion valuation in HK IPO
The firm built a global fast-fashion empire by offering low-priced, trend-driven apparel shipped directly from suppliers
Shein Global Holdings Ltd. is targeting a valuation of $26 billion to $27 billion in its initial public offering in Hong Kong. This represents a sharp drop from its peak value. According to Investing.com, the company plans to raise approximately $2 billion through the offering, with existing shareholders potentially purchasing up to about half of the deal.
The valuation target marks a significant decline from the company's peak valuation of around $100 billion in 2022. Shein has faced challenges such as tariffs and competition from PDD Holdings Inc.'s Temu, which have contributed to its decline. The company recently sought a $30 billion valuation but encountered resistance from investors.
Shein is preparing to list around the end of August, although details including size, valuation, and timing remain subject to change. The company, founded in China and now based in Singapore, has previously attempted to go public in New York and London without success. In the first quarter of this year, Shein reported a loss of $99 million, compared to a profit of $395 million in the same period last year.
Brief written by urgent.news from Financial Post, Investing.com, Bloomberg — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
