Shein to Launch Hong Kong IPO on August 19, Targeting $30-40 Billion Valuation
Shein's IPO Plans and Market Context
By Kane Wu and Selena Li
IPO Launch Timeline and Marketing
HONG KONG, Aug 11 (Reuters) - Online fast-fashion retailer Shein is planning to launch its Hong Kong initial public offering as soon as Wednesday of next week, two people with knowledge of the matter said on Tuesday.
The Singapore-based company has been marketing the share offering to investors this week, said one of the two sources and a third source with knowledge of the marketing plans.
Shein did not immediately respond to a Reuters request for comment.
Valuation Targets and Confidentiality
Shein is targeting a valuation between $30 billion to $40 billion in the IPO, Reuters reported last week.
The sources declined to be named as the information was confidential.
Business Performance and Market Challenges
Revenue Growth and Margin Pressures
The long-awaited float comes as slowing revenue growth and weaker core earnings weigh on Shein's business, while shrinking margins have also raised concerns its breakneck expansion is running into headwinds from higher trade costs, tighter regulatory scrutiny and intensifying competition across global e-commerce.
Impact of Regulatory Changes and Accounting Adjustments
The retailer, known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, swung to a $99 million quarterly loss after the U.S. removed an import duty exemption on small packages and a $328 million fair-value charge on convertible redeemable preferred shares following an accounting change.
Historical Valuation Trends
The company's target valuation with the IPO marks a dramatic reset from earlier private fundraising rounds that valued Shein at $98.2 billion in 2022, before falling to $64 billion in 2023 and April 2024.
(Reporting by Kane Wu and Selena Li; Editing by Christian Schmollinger and Kevin Buckland)
