Shein Eyes $30-40 Bn Valuation for Hong Kong IPO

Singapore-headquartered online fast-fashion retailer Shein is seeking a valuation of $30 Bn to $40 Bn for a Hong Kong IPO it plans to launch as early as mid-August. The target would mark a steep reset from its previous private-market valuations.

The valuation and the IPO schedule could change, though, following feedback from investors, Reuters reported, citing three people familiar with the plans.

Shein held investor meetings in New York, Boston and San Francisco over the past week. Against that backdrop, some potential cornerstone investors are pushing for a valuation closer to $30 Bn or $32 Bn.

At those levels, they would enter at a lower price and retain more potential upside after the listing. Any commitments from them could help anchor the order book and reduce execution risk for the IPO. For Shein, pricing the offering at that level would mean accepting a lower headline valuation in exchange for greater certainty of demand.

The proposed range represents a sharp decline from the $98.2 Bn valuation Shein secured in a 2022 funding round. The company was valued at $64 Bn in subsequent funding rounds in 2023 and April 2024 as growth slowed and external pressures mounted.

Shein is prioritising a price that can support its shares after the listing rather than seeking the highest possible valuation, one of the people with knowledge of the situation said. However, the company has not disclosed the size of the offering, its proposed share price or a definitive timetable.

The valuation cut comes as the business faces slowing revenue growth and weaker earnings. Shein recorded a $99 Mn loss in the first quarter of 2026, compared to a $395 Mn profit a year earlier, according to its draft prospectus.

The quarterly loss reflected slower sales after the US ended its duty-free exemption for low-value parcels, as well as a $328 Mn fair-value charge on convertible redeemable preferred shares linked to an accounting change.

Revenue rose 8% to $41.8 Bn in 2025, while net income declined 39% to $2.06 Bn. The company’s operating margin also narrowed as higher trade costs and competition placed pressure on a business built around shipping low-cost products directly to consumers.

Changes to rules governing low-value shipments in the US and the EU have clouded Shein’s earnings outlook. The company said it was pursuing a range of options, including raising prices in the US, to offset some of the additional costs.

A valuation of $30 Bn to $40 Bn would place Shein closer to H&M, which is worth about $26 Bn, but well below Uniqlo owner Fast Retailing and Zara parent Inditex.

The e-retailer would be valued at about 0.7-1 times its 2025 sales, compared with about 1.1 times for H&M, 4.6 times for Inditex and 7.6 times for Fast Retailing, according to Reuters calculations. Momentum Works said the discount reflected Shein’s lower profit margins and weaker earnings visibility.

Shein has reportedly agreed to compensate investors in its Pre-D, D and D+ funding rounds for the decline in valuation. The filings guarantee them cash payouts equivalent to an annual return of 8% on their original investments, amounting to about $1.1 Bn in total. If the IPO price is below what they paid, their preferred shares will convert into a larger number of Class B shares at a lower conversion price.

The company received approval from the China Securities Regulatory Commission for the Hong Kong listing on July 10. According to Reuters, it subsequently obtained clearance from the Hong Kong stock exchange’s listing committee. These decisions cleared key hurdles after earlier attempts to go public in New York and London stalled.

Shein plans to use the proceeds for technology investment, global brand-building, corporate responsibility initiatives and general corporate purposes.