Shein eyes company valuation of around $25 billion in Hong Kong IPO, sources say

• Shein's target valuation of $25-28 billion marks a roughly 75% drop from its peak valuation of nearly $100 billion in 2020
• The company, founded in China in 2012 and now headquartered in Singapore, is known for ultra-low pricing such as $5 dresses and $10 jeans
• The IPO launch is expected later this week in Hong Kong after the company shifted from earlier plans for a U.S. listing

Summary: Shein Targets $25 Billion Valuation in Hong Kong IPO

Key Development:

Online fast-fashion retailer Shein is pursuing a Hong Kong initial public offering with a targeted valuation of approximately $25 billion, according to three sources familiar with the matter. This represents a dramatic 75% decline from its peak valuation of nearly $100 billion four years ago.

Company Profile:

• Founded in China in 2012, now headquartered in Singapore
• Operates in approximately 160 countries
• Known for ultra-low pricing ($5 dresses, $10 jeans)
• Business model focused on fast-fashion e-commerce

Deal Specifics:

• Expected valuation range: $25-28 billion based on marketing price band
• IPO launch anticipated later this week (as of August 17)
• Listing venue: Hong Kong Stock Exchange

Market Context:

The significant valuation reduction reflects challenging business conditions facing the fast-fashion sector. The company's peak valuation occurred four years ago, but deteriorating market conditions have forced a more conservative pricing approach for the public offering.

Disclosure:

Information comes from three unnamed sources not authorized to speak publicly before official deal announcement. Shein representatives did not immediately respond to Reuters' request for comment.

Investment Implications:

The steep valuation cut highlights broader pressures on e-commerce and fast-fashion businesses, potentially signaling investor caution toward high-growth consumer retail companies. The Hong Kong listing choice, rather than U.S. markets, may reflect regulatory considerations given the company's Chinese origins. Investors should monitor the final pricing and reception as indicators of appetite for consumer discretionary stocks in current market conditions.