Shein Plans to Go Public in Hong Kong with A Valuation of About $25 Billion

According to three sources with knowledge of the situation, online fast-fashion retailer Shein is aiming for a corporate valuation of about $25 billion in its Hong Kong IPO, down from roughly $100 billion four years ago due to difficult business conditions.

According to Reuters, Singapore-based Shein, which is well-known for selling $5 gowns and $10 jeans to customers in about 160 countries, plans to launch its eagerly anticipated initial public offering later this week.

Based on the marketing price range for the offering, one of the three sources stated that the company, which was established in China in 2012, was considering a valuation of between $25 billion and $28 billion.

Since they were not permitted to speak to the media before the specifics of the arrangement were made public, the sources declined to be identified. A request for comment from Reuters was not immediately answered by a Shein representative.

According to a Reuters story on August 4, Shein’s most recent objective for the company’s valuation is also less than the $30 billion to $40 billion it set for itself at the start of this month and shortly after it began investor meetings.

Shein was valued at $98.2 billion in a 2022 fundraising round, but some investors who attended IPO presentations or looked over recent financial records told Reuters they were not confident Shein could return to the growth rates.

Shein’s finances could be negatively impacted by a reduced valuation since, according to the rules of its IPO filing, the business would have to give additional shares to some pre-IPO investors if the price fell below predetermined criteria.