Shein values itself at $25 billion ahead of IPO

Online retailer Shein plans to value its company at $25 billion as part of its upcoming IPO in Hong Kong. This is four times lower than the nearly $100 billion the company was valued at four years ago. According to sources, the offering price range will be between $25 billion and $28 billion. Shein is expected to begin the IPO process by the end of this week. The new valuation is below the company's recent expectations, which had anticipated a valuation of $30–40 billion. The decrease followed meetings with investors who expressed doubts about the company's ability to return to its previous growth rates. Founded in China in 2012, Shein became known for selling inexpensive clothing in 160 countries. However, challenging business conditions and competition have weakened Shein's position compared to 2022, when the company was valued at $98.2 billion. The decline in market value creates additional risks for the company, as a drop in valuation below certain thresholds would require Shein to issue additional shares to early investors. Shein representatives are refraining from commenting until the official announcement of the IPO terms.

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