Shein aims to IPO on September 1, sources say

Shein plans to launch its Hong Kong initial public offering (IPO) on Monday, according to sources familiar with the matter, with a target listing date of September 1, said two additional sources. The September 1 date is slightly later than initially planned. Reuters previously reported that Shein had aimed for an August 28 listing date.

Slower growth and rising costs have caused a decline in investor appetite for Shein, leading to the delay, as reported by the South China Morning Post. The online fast-fashion retailer was once considered a disruptive competitor to established brands like H&M and Zara, thanks to its speedy supply chain and low prices. UBS Group's asset management division, which is investing in Shein for the first time, will be a cornerstone investor in the IPO, according to a fourth source.

Cornerstone investors commit to purchasing a specific number of shares and agree to a six-month lockup period. Shein is now targeting a valuation of $26 billion to $27 billion, a significant drop from the $100 billion valuation it secured in a private fundraising round in 2022. The company had sought an IPO valuation of $30 billion to $40 billion during early investor meetings. Shein did not respond to requests for comment.