Online fast-fashion retailer Shein is eyeing a valuation of approximately $25 billion for its upcoming Hong Kong initial public offering (IPO). This figure represents a substantial decrease from its peak valuation of nearly $100 billion in 2022, and even a drop from the $30 billion to $40 billion range that Reuters reported at the beginning of the month. Sources indicate that the company may issue up to 8% of its total shares, which at a $25 billion valuation would equate to an offering size of up to $2 billion.
Bloomberg Intelligence analysts Catherine Lim and Jason Zhu estimate Shein's valuation at $22 billion to $25 billion, based on 13 to 15 times projected 2027 earnings. They anticipate earnings to rebound to $1.67 billion in 2027 and then grow by about 20% annually through 2029, accounting for freight and tariff shocks impacting 2026 results. The overall reduction in valuation reflects several factors, including slower growth, increased trade costs, tighter regulatory scrutiny, and intensifying competition.
Shein has reportedly pushed back its Hong Kong market debut to September 1, after a slight delay in investor orders for its IPO. The company originally aimed to complete the IPO by the end of August but now plans to commence book-building from August 24. While Shein aims for a maximum listing valuation not exceeding $30 billion, discussions are ongoing, and details regarding deal size, valuation, and timing could still change. Some investors remain unconvinced that Shein can return to its prior high growth rates, especially after the company recorded a $99 million quarterly loss in the first quarter of 2026 due to slowed sales and $328 million in fair value losses on convertible shares.
