Reuters reports Shein targeting around $25 billion valuation in Hong Kong IPO
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Fast-fashion retailer Shein is seeking a company valuation of around $25 billion in its Hong Kong IPO, three people with knowledge of the matter told Reuters, down from nearly $100 billion four years ago. The Singapore-headquartered company aims to launch its initial public offering later this week, Reuters has reported.
Key Facts
- Shein is looking at a valuation of between $25 billion and $28 billion based on the marketing price band, one source told Reuters.
- The latest valuation target is below the $30 billion to $40 billion Shein was aiming for at the start of August.
- Under the terms of its IPO filing, Shein would be required to provide extra shares to certain pre-IPO investors if the valuation falls below agreed thresholds.
- Some investors who attended IPO presentations or reviewed recent financial statements told Reuters they doubted Shein would return to the growth rates that valued it at $98.2 billion in a 2022 fundraising round.
- Shein aims to launch its initial public offering later this week.
Valuation Target Range
Shein is eyeing a company valuation of around $25 billion in its Hong Kong IPO, three people with knowledge of the matter told Reuters. One source said the company was looking at a valuation of between $25 billion and $28 billion based on the marketing price band. The latest target is below the $30 billion to $40 billion Shein was aiming for at the start of August, Reuters reported on August 4. Shein was valued at $98.2 billion in a 2022 fundraising round.
IPO Launch Plans
Shein aims to launch its initial public offering later this week, Reuters has reported. The Singapore-headquartered retailer sells $5 dresses and $10 jeans to shoppers in about 160 countries. The company was founded in China in 2012.
Investor Concern
Some investors who attended IPO presentations or reviewed recent financial statements told Reuters they doubted Shein would return to the growth rates that produced the 2022 valuation. Under the terms of its IPO filing, Shein would be required to provide extra shares to certain pre-IPO investors if the valuation falls below agreed thresholds. A spokesperson for Shein did not immediately respond to a Reuters request for comment.
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Reuters reports Shein targeting around $25 billion valuation in Hong Kong IPO
