BY COMFORT OGBONNA
Online fast-fashion retailer Shein is targeting a valuation of between $30 billion and $40 billion for a potential Hong Kong initial public offering that could launch as early as mid-August, according to people familiar with the matter.
The company began preliminary meetings with potential investors last week as it prepares for the possible listing, which could take place in the middle to later part of the month. The timeline and valuation target remain subject to change depending on investor feedback during the marketing process.
The planned valuation would represent a significant reduction from Shein’s peak private-market value. The company was valued at approximately $98.2 billion in 2022 before its valuation declined to about $64 billion during later fundraising rounds in 2023 and 2024 as growth slowed and the business faced increasing regulatory and competitive pressures.
Shein has not publicly confirmed the size of the offering, expected share price, or exact listing schedule. The company, which is headquartered in Singapore but was founded in China, has been preparing for a public listing after previously exploring options in other major markets.
A draft prospectus released last month showed that Shein reported a quarterly loss of $99 million, driven partly by weaker sales growth following changes to U.S. import rules affecting small packages and a significant accounting charge.
The company recorded a $328 million fair-value adjustment related to convertible redeemable preferred shares after an accounting change. However, the results also highlighted broader challenges, including slowing revenue growth and pressure on profitability.
Shein’s rapid global expansion has faced growing obstacles, including higher trade costs, increased regulatory scrutiny, and stronger competition from established fashion and e-commerce companies. Analysts and investors have raised concerns about whether the company can maintain the pace of growth that helped it become one of the world’s most valuable private technology and retail companies.
Known for offering low-priced clothing, including dresses and jeans often sold at heavily discounted prices, Shein has built a global customer base across roughly 160 countries by using a fast-production model and direct-to-consumer online sales strategy.
The company is now prioritizing a valuation that can support its stock performance after listing rather than focusing solely on achieving the highest possible market value, according to people familiar with the discussions.
Some potential major investors have reportedly indicated interest in a valuation closer to the lower end of the target range, around $30 billion to $32 billion. Shein has held investor meetings in several U.S. financial centers as part of its preparation for the offering.
If Shein achieves a valuation between $30 billion and $40 billion, the company would rank alongside major global apparel retailers but remain below some of the industry’s largest players. The valuation would be comparable to Sweden’s H&M, while still significantly lower than Japan’s Fast Retailing, the owner of Uniqlo, and Spain’s Inditex, the parent company of Zara.
The company is also considering steps to reduce the cost impact for some late-stage investors who purchased shares at higher private-market valuations. Possible measures include providing additional shares or adjusting conversion terms for certain investments.
Shein received approval from Chinese regulators in July to proceed with its Hong Kong listing, clearing a major hurdle after earlier attempts to pursue public offerings in the United States and the United Kingdom did not move forward.
The company has said it plans to use proceeds from the IPO to support technology development, global brand expansion, corporate responsibility programs, and general business operations as it continues efforts to strengthen its position in the global fashion market.
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