Shein plans to launch its initial public offering (IPO) on the Hong Kong Stock Exchange as early as August 19, according to several sources close to the matter cited by Reuters. The Singaporean group specializing in ultra-low-cost fashion reportedly began presenting its plans to potential investors this week.
The company has not publicly confirmed this timeline. Those interviewed wished to remain anonymous due to the confidential nature of the preparations. This IPO has been anticipated for several years, following Shein's failed attempts to list in the United States and then in London.
A valuation between 30 and 40 billion dollars
Shein is reportedly aiming for a valuation between $30 billion and $40 billion, or approximately €26 billion to €34 billion. This amount would be significantly lower than the $98,2 billion raised during a private funding round in 2022. The group's valuation had already been revised down to $64 billion in 2023 and again in April 2024.
This decline reflects investor concerns about slowing growth, shrinking margins, and increased competition in e-commerce. Shein also faces heightened regulatory scrutiny of its business model, supply chain, and manufacturing conditions.
The end of a customs exemption weighs on the results
The group sells very low-priced clothing in approximately 160 countries, including dresses for $5 and jeans for $10. This model relies heavily on the direct shipment of small packages from Asia, allowing it to quickly refresh its collections and minimize inventory.
Shein, however, posted a quarterly loss of $99 million after the United States eliminated a tariff exemption on small packages. Its accounts were also impacted by a $328 million charge related to the revaluation of certain preferred shares. A Hong Kong listing would allow it to raise new capital, but at a valuation far below the peaks reached four years earlier.
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