- Shein plans a $25 billion valuation for its Hong Kong IPO, down from $100 billion in 2022
- The company may offer up to 8% of shares, potentially raising $2 billion in the IPO
- Revenue growth slowed to 8% in 2025 from 41.1% in 2023, with $41.8 billion in revenue
Online fashion retailer Shein is weighing a valuation of about $25 billion for its planned Hong Kong initial public offering, a steep discount to the nearly $100 billion valuation it secured in a 2022 funding round, as slowing growth and mounting regulatory challenges weigh on investor appetite, people familiar with the matter told Reuters.
Two sources told the news agency that Shein is likely to be valued at about $25 billion, while another put the potential valuation in the $25 billion-$28 billion range, based on the proposed IPO price band.
The estimate is below the $30 billion-$40 billion valuation range the company was reportedly targeting earlier this month.
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Shein is expected to launch the long-awaited IPO later this week and could offer up to 8% of its total shares, a source said.
At a $25 billion valuation, the offering could raise as much as $2 billion.
The lower valuation reflects concerns over slowing growth, higher trade costs, tighter regulatory scrutiny and intensifying competition.
Shein's revenue growth slowed to 8% in 2025 from 20.7% in 2024 and 41.1% in 2023, with revenue reaching $41.8 billion.
Growth weakened further in the first quarter of 2026, when revenue rose just 1.1%, amid the impact of US customs duties and tariffs.
Shein reported net income of $2.06 billion for 2025. However, it swung to a $99 million quarterly loss in the first quarter of 2026 and recorded $328 million in fair-value losses on convertible shares, according to filings with the Hong Kong Stock Exchange.
The sharp valuation cut highlights growing investor caution over Shein's ability to regain the rapid growth rates that once supported its near-$100 billion valuation, Reuters reported.
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