Shein Pitches IPO Below $30 Billion as Profit Halves From 2024 Peak
Updated
Updated · Financial Times · Aug 10
Shein Pitches IPO Below $30 Billion as Profit Halves From 2024 Peak
3 articles · Updated · Financial Times · Aug 10
Summary
Shein’s advisers are marketing the Hong Kong IPO at a valuation below $30 billion, down about 70% from the more than $100 billion valuation it reached in 2022.
Investor appetite appears centered in the mid-to-high $20 billions as the fast-fashion group tries to revive a listing process delayed for more than four years.
The lower pitch reflects pressure from US tariffs, the loss of import-duty exemptions in the US and EU, stronger competition from Temu, and higher air-freight costs.
Financial strain has deepened: Shein posted a $99 million net loss in the first quarter, while annual net profit fell to $2 billion last year from a $3.4 billion peak in 2024.
Chinese regulators approved the Hong Kong listing application last month, but Shein may still need existing investors’ consent if pricing falls below its internal $30 billion target.