The range marks a steep drop from the $98.2 billion valuation Shein commanded in a 2022 private fundraising round
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Shein is targeting a valuation of $30 billion to $40 billion for a Hong Kong initial public offering the company plans to launch as early as mid-August, according to Reuters, citing unnamed sources familiar with the matter. The target and timeline are not final and could change based on feedback from investor meetings.
The new targets reflect a striking decline from Shein's peak private valuations. Investors pegged the company at $98.2 billion during a 2022 funding round, a number that eroded to $64 billion by 2023 and held there into April 2024 as revenue momentum faded and the business faced mounting headwinds, according to Reuters. Some potential cornerstone investors are pushing for a valuation closer to $30 billion or $32 billion. One source said that Shein is prioritizing a price that can support the stock after listing rather than maximize its valuation at the offering.
Shein held investor meetings in New York, Boston, and San Francisco over the past week. The draft prospectus Shein filed last month revealed the company posted a $99 million net loss in the most recent quarter, a result tied to weaker sales following the U.S. decision to close the small-package duty exemption and a $328 million charge arising from an accounting-driven fair-value adjustment to convertible redeemable preferred shares. According to its draft prospectus, the company plans to direct the money it raises toward technology development, building its brand internationally, corporate responsibility programs, and broader operating needs.
Reuters estimated that a $30 billion to $40 billion valuation would put Shein's price-to-sales multiple somewhere between 0.7 and 1 based on 2025 revenue, a steep discount to peers such as H&M at roughly 1.1 times, Inditex at 4.6 times, and Fast Retailing at 7.6 times.
Shein's path to a public listing has been complicated by geopolitical pressures, failed listing attempts in New York and London, and the rollback of duty-free treatment for small-value shipments from China. Chinese regulators at the CSRC signed off on the Hong Kong offering on July 10, a green light that came only after the company's bids to list in New York and London had each collapsed. Despite having moved its base of operations to Singapore, Shein remained subject to Chinese regulatory oversight because the vast majority of its merchandise is produced by contract factories on the Chinese mainland.
The company was founded in China in 2012 and sells apparel in more than 160 countries. A successful Hong Kong debut would be a significant milestone for the city's equity markets.
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