Online fast-fashion retailer Shein is considering a valuation of about $25 billion for its planned Hong Kong initial public offering, a dramatic reduction from the nearly $100 billion valuation it commanded in a private funding round four years ago, as slowing growth, rising trade costs and tougher regulation weigh on investor appetite.
Two people familiar with the matter told Reuters Shein was likely to be valued at around $25 billion in the IPO, while a third source said the company was considering a valuation of between $25 billion and $28 billion based on the marketing price range for the offering.
The latest target is also significantly below the $30 billion to $40 billion valuation Shein was seeking earlier this month when it began marketing the offering to investors.
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Shein, which was founded in China in 2012 and is now headquartered in Singapore, is seeking to launch the long-awaited listing in Hong Kong later this week. The company is expected to offer as much as 8% of its shares, according to a fourth person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of up to about $2 billion.
The valuation reset highlights the extent to which Shein’s growth story has changed since the company was valued at $98.2 billion in a 2022 fundraising round. Its private-market valuation subsequently fell to about $64 billion in 2023 and April 2024.
Shein built its business around an ultra-low-cost model, selling products such as $5 dresses and $10 jeans to consumers in roughly 160 countries. Its rapid expansion was driven by an online-only model, data-driven product development and a supply chain centered on Chinese manufacturers.
That model is now facing a more difficult operating environment.
The company’s biggest markets have tightened scrutiny of e-commerce platforms selling inexpensive goods manufactured in China, while changes to trade rules have increased the cost of shipping low-value parcels into major consumer markets. Competition from rivals such as Temu and established online retailers has also intensified.
Shein’s financial performance has begun to show the pressure. The company recorded a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed after the United States removed an import-duty exemption covering small packages. A significant one-time accounting charge also weighed on its results.
The weakening outlook has made investors less willing to assign Shein the aggressive growth multiple that supported its previous private-market valuations.
Some investors who attended Shein’s IPO presentations or reviewed its recent financial statements told Reuters they remained unconvinced that the company could return to the growth rates that supported its $98.2 billion valuation in 2022.
The issue is of concern because Shein’s valuation depends heavily on its ability to sustain rapid international expansion while maintaining margins. Higher tariffs and other trade costs directly challenge the economics of its low-price model, while regulatory scrutiny could raise compliance costs or constrain some of the practices that helped the company scale quickly.
The proposed IPO also carries implications for existing investors. Under the terms of Shein’s Hong Kong listing documents, the company could be required to issue additional shares to certain pre-IPO investors if its IPO valuation falls below agreed thresholds. A lower listing valuation could therefore create additional dilution for other shareholders.
The planned Hong Kong listing is consequently more than a test of investor demand for Shein. It is also a public-market assessment of whether the fast-fashion model that fueled one of the world’s most rapid e-commerce expansions can continue to deliver strong growth as trade barriers rise and competition intensifies.
However, a $25 billion valuation would still make Shein one of the more valuable consumer internet companies to enter Hong Kong’s market, but it would represent a striking repricing of its growth prospects. The gap between that valuation and the $98.2 billion private-market peak shows that investor expectations have sharply changed in just four years.