The fast-fashion retailer is considering a valuation of USD 25-28 billion for its long-awaited listing, significantly below its nearly USD 100 billion valuation four years ago
Singapore-headquartered fast-fashion retailer Shein is targeting a valuation of around USD 25 billion for its proposed Hong Kong initial public offering (IPO), significantly below the nearly USD 100 billion valuation it commanded four years ago, according to a Reuters report.
The company, which was founded in China in 2012, is considering a valuation of between USD 25 billion and USD 28 billion based on the indicative price range for the offering, according to report.
Shein, known for its low-priced fashion products, sells items such as USD 5 dresses and USD 10 jeans to customers across around 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.
The proposed valuation marks a sharp decline from the nearly USD 100 billion valuation Shein reached four years ago, highlighting the more challenging conditions facing the fast-fashion retailer and broader ecommerce market.
The company has faced increasing scrutiny over its business practices and operating model, while competition in the global fast-fashion market has intensified. The lower valuation could also reflect changing investor sentiment towards high-growth ecommerce businesses.
The Hong Kong listing would mark a significant step for Shein as it seeks to access public markets following years of efforts to pursue an initial public offering.
