Shein eyes company valuation of around $25bn, from $98bn four years ago

Shein is aiming to launch its much-awaited initial public offering later this week

Shein clothing for sale. The online fast-fashion retaileris eyeing a company valuation of around $25bn (€21.55bn) in its Hong Kong IPO, down from nearly $100bn four years ago due to challenging business conditions.

Online fast-fashion retailer Shein is eyeing a company valuation of around $25bn (€21.55bn) in its Hong Kong IPO, said three people with knowledge of the matter, down from nearly $100bn four years ago due to challenging business conditions.

Singapore-headquartered Shein, known for selling €5 dresses and €10 jeans to shoppers in about 160 countries, is aiming to launch its much-awaited initial public offering later this week, Reuters has reported.

One of the three sources said that the company, which was founded in China in 2012, was looking at a valuation of between $25bn and $28bn based on the marketing price band for the offering.

The sources declined to be named as they were not authorised to speak to the media ahead of a public announcement of the deal terms. A spokesperson for Shein did not immediately respond to a Reuters request for comment.

The latest company valuation target is also lower than $30bn-$40bn that Shein was aiming for at the beginning of this month and soon after it kickstarted investor meetings, Reuters reported on August 4.

Some investors, who attended IPO presentations or reviewed recent financial statements, have told Reuters they were not convinced Shein could return to the growth rates that valued it at $98.2bn in a 2022 fundraising round.

A lower valuation could weigh on Shein's financials as under the terms of its IPO filing, the company would be required to provide extra shares to certain pre-IPO investors if the valuation falls below agreed thresholds.

Reuters