The fast-fashion company could be valued at $25 billion to $28 billion, far below its nearly $100 billion valuation in 2022.
Fast-fashion retailer Shein is targeting a valuation of around $25 billion to $28 billion in its planned Hong Kong IPO, according to people familiar with the offering. That would represent a sharp decline from the company’s nearly $100 billion valuation in 2022.
The proposed valuation reflects growing pressure on Shein as regulatory scrutiny, higher trade costs and competition in global e-commerce weigh on its growth prospects.
Shein, which was founded in China in 2012 and is now headquartered in Singapore, is expected to launch its long-awaited IPO later this week.
Shein’s IPO Valuation Falls Further
The latest valuation target is significantly below the $30 billion to $40 billion range the company was reportedly considering earlier this month when it began meeting potential investors.
Two sources said Shein could be valued at about $25 billion, while another put the expected range between $25 billion and $28 billion.
The company is planning to offer as much as 8% of its total shares, which would translate into an IPO of up to roughly $2 billion at a $25 billion valuation.
Shein has not publicly confirmed the final pricing range.
From $98 Billion to $25 Billion
The proposed IPO valuation marks a dramatic change in investor expectations.
Shein reached a valuation of $98.2 billion in a 2022 fundraising round, when investors placed a much higher value on its rapid global growth and direct-to-consumer business model.
Since then, the company has faced a more difficult operating environment.
Governments in some of its largest markets have increased scrutiny of low-cost imports and e-commerce platforms selling inexpensive goods manufactured in China. The changes have increased costs and challenged the business model that helped Shein expand rapidly across international markets.
US Trade Changes Hit Growth
Shein’s financial performance has also come under pressure.
The company reported a $99 million quarterly loss in the first quarter of 2026, as sales growth slowed following the US decision to remove an import-duty exemption for small packages.
The company also recorded a significant one-time accounting charge, adding further pressure to its financial results.
For a retailer built around low prices and high volumes, higher import costs can directly affect margins and make its products less competitive.
Competition Adds to the Pressure
Shein is also facing stronger competition across global e-commerce.
Platforms offering inexpensive fashion and consumer products have expanded rapidly, giving shoppers more alternatives while forcing Shein to compete on price, speed and product selection.
The company still operates across roughly 160 countries and has built a huge customer base around inexpensive clothing and frequent product launches. But investors are questioning whether it can return to the growth rates that supported its earlier valuation.
What the Lower Valuation Means
A $25 billion valuation would still make Shein one of the world’s most valuable fashion retailers, but the gap from its 2022 valuation is striking.
The lower pricing could also have financial consequences for existing investors. Under the terms of Shein’s IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.
The Shein Hong Kong IPO therefore represents more than a major public listing. It will also serve as a test of how investors value a global fast-fashion business facing slower growth, higher trade barriers and increasing regulatory pressure.
Singapore-headquartered Shein’s biggest markets are cracking down on e-commerce platforms selling cheap Chinese-made goods, bearing down on its growth prospects.
Photo: Reuters file
