Shein, the online fast-fashion retailer, is reportedly aiming for a Hong Kong initial public offering (IPO) launch around September 1. The company is targeting a valuation in the range of $26 billion to $27 billion. This valuation represents a substantial decrease from the $100 billion valuation it achieved in a private fundraising round in 2022, and is also lower than the $30 billion to $40 billion it previously sought when investor meetings began.
The company is looking to launch its IPO on August 24, with the listing potentially occurring on September 1 or a few days later, depending on market conditions. UBS Asset Management, the asset management arm of UBS Group, is set to be a new cornerstone investor in the IPO, marking its first investment in Shein. Cornerstone investors commit to buying a fixed amount of shares before the IPO and are subject to a six-month lock-up period.
The reduced valuation is attributed to factors such as slower growth and higher operational costs. Shein may also offer payouts to early investors and additional shares with lower conversion prices to mitigate their investment costs, according to public filings. The Singapore-headquartered company had previously aimed to raise approximately $2 billion to $3 billion in its IPO, with the final amount dependent on investor feedback and the valuation.
