Shein aims for almost $27bn valuation in 1 September stock market debut
The valuation is much lower than $100bn reached in a round of private fundraising in 2022.
Shein is targeting a valuation of nearly $27 billion for its stock market debut on September 1.
The fast-fashion behemoth announced its intention to raise as much as HK$13.86 billion (£1.3 billion; $1.77 billion) when its shares begin trading on the Hong Kong stock market. If achieved, this top-end figure would value the company at close to $27 billion (£19.8 billion). This valuation, however, represents a significant decrease from the $100 billion valuation it secured during a private fundraising round in 2022, a change attributed to slower sales growth and increased expenses.
This much-anticipated public offering follows unsuccessful attempts to list in both the US and London. Those efforts were hampered by regulatory hurdles and increased scrutiny of Shein, which, despite being founded in China, is headquartered in Singapore.
The initial public offering (IPO) has the support of prominent Wall Street investment firms, including Goldman Sachs, Morgan Stanley, and JP Morgan.
In July, Shein reported a quarterly loss, with sales declining after then-US President Donald Trump eliminated an import duty exemption for small packages. The company disclosed a loss of $99 million in the first quarter of the year, a stark contrast to the net income of $395 million reported in the same period the previous year. This also occurs amidst ongoing uncertainty surrounding the paused US-China tariff disputes.