Shein eyes $25-28 billion valuation for upcoming Hong Kong IPO

Singapore-headquartered fast-fashion giant Shein is preparing to launch its initial public offering (IPO) in Hong Kong later this week. According to multiple sources familiar with the company's plans, the retailer is targeting a valuation between $25 billion and $28 billion. This figure marks a significant decline from the nearly $100 billion valuation the company achieved during a share sale four years ago.

The decline in valuation is attributed to deteriorating business conditions and increased regulatory scrutiny of e-commerce platforms selling low-cost Chinese goods in major global markets. Shein, which was founded in China in 2012, operates in approximately 160 countries and is widely known for its affordable inventory, such as five-dollar dresses and ten-dollar jeans. One source indicated that the company plans to issue up to 8% of its total shares, meaning a $25 billion valuation would result in an offering size of approximately $2 billion.

While previous reports suggested the IPO was highly anticipated, the current valuation reflects the challenging climate for e-commerce growth. The company has not yet provided an official public statement regarding the finalized price band.