By Summer Zhen and Kane Wu
HONG KONG, Aug 17 (Reuters) – Online fast-fashion retailer Shein is eyeing a company valuation in its planned Hong Kong IPO of just a quarter of the nearly $100 billion number seen in a share sale four years ago, sources said, as its growth prospects weaken.
Two people familiar with the situation said Shein’s value was likely to be around $25 billion in the IPO, while a third source said the company was looking at a valuation of between $25 billion and $28 billion, based on the marketing price band for the offering.
The decline comes after Singapore-headquartered Shein’s biggest markets crack down on e-commerce platforms selling cheap Chinese-made goods, bearing down on its growth prospects.
Founded in China in 2012 and known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, Shein is aiming to launch its much-awaited initial public offering later this week, Reuters has reported.
REGULATORY SCRUTINY AND INTENSIFYING COMPETITION
Shein is planning to issue up to 8% of its total shares in the IPO, a fourth person with direct knowledge of its plans said. A $25 billion valuation would translate to an offering size of up to $2 billion.
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 the $30 billion-$40 billion that Shein was aiming for at the beginning of this month and soon after it began investor meetings on the issue, Reuters reported on August 4.
Shein’s steep valuation downsizing in the IPO underscores how slower growth, higher trade costs, tighter regulatory scrutiny and intensifying competition across global e-commerce platforms have dampened investor appetite for the company.
Shein swung to a $99 million quarterly loss in the first quarter of 2026 as sales slowed after the U.S. removed an import duty exemption on small packages. Also weighing on its valuation was a hefty one-time accounting charge, according to its filings to the Hong Kong Stock Exchange in July.
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 $98.2 billion 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.
(Reporting by Summer Zhen and Kane Wu in Hong Kong; additional reporting by Helen Reid in London; Editing by Sam Holmes and David Holmes)
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