Shein targets about $25 billion valuation 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 Singapore-headquartered, is known for ultra-low prices including $5 dresses and $10 jeans
• The IPO launch is expected later this week, representing one of the most anticipated public offerings in the fast-fashion sector

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 target valuation of approximately $25 billion, according to three sources familiar with the matter. The company plans to launch its IPO later this week.

Valuation Details:

• Target valuation: $25-28 billion based on marketing price band
• Represents a dramatic 75% decline from its previous $100 billion valuation four years ago
• The steep reduction reflects challenging business conditions in the fast-fashion sector

Company Background:

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

Market Implications:

The significant valuation markdown highlights mounting pressures in the fast-fashion industry, including:

• Increased regulatory scrutiny
• Supply chain challenges
• Growing competition
• Potential consumer spending headwinds

The Hong Kong listing comes after Shein reportedly faced obstacles pursuing a U.S. IPO, making this Asian market debut a strategic pivot for the company. The valuation reset may signal more realistic pricing expectations for high-growth e-commerce companies in the current market environment.

The IPO launch timing and final valuation will provide important insights into investor appetite for fast-fashion retail and cross-border e-commerce businesses amid global economic uncertainty. The offering represents one of the most anticipated retail IPOs in the Asian market this year.