Shein is seeking a valuation of between US$30-billion and $40-billion (R495-billion and R660-billion) in a Hong Kong initial public offering (IPO) that the online fast-fashion retailer plans to launch as early as mid-August, three people familiar with the matter said.

Shein started pre-deal investor meetings last week, one person said. The deal could be launched in mid-to-late this month, said two of the people, all of whom declined to be named as the plans are confidential.

The valuation target marks a dramatic reset for Shein, whose worth peaked at $98.2-billion in 2022 before falling to $64-billion in 2023 and April 2024 in private fundraising rounds as growth slowed and external pressures mounted.

The IPO valuation target, which has not been previously reported, and the launch timeline are not final yet and subject to change after feedback from investor meetings, said the people.

Shein has not publicly disclosed the IPO size, the offer price and the listing timetable. The Singapore-headquartered company, which was founded in China, did not immediately respond to a request for comment.

The draft IPO prospectus of Shein last month showed that the company swung to a $99-million quarterly loss due to slowing sales after the US removed an import duty exemption on small packages and a hefty one-time accounting charge.

Headwinds

While the loss partly reflected a $328-million fair-value charge on convertible redeemable preferred shares following an accounting change, slowing revenue growth and weaker core earnings highlight growing strains on the business.

Shrinking margins have also raised concerns that Shein’s breakneck expansion is running into headwinds from higher trade costs, tighter regulatory scrutiny and intensifying competition across global e-commerce.

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Shein, known for selling R200 dresses and R400 jeans to shoppers in about 160 countries, is prioritising a price that can support the shares after the listing rather than maximise valuation, said the first source.

Some potential cornerstone investors in the IPO are pushing for a valuation closer to $30-billion or $32-billion, the source said, adding Shein has held investor meetings in New York, Boston and San Francisco over the past week.

A $30-billion to $40-billion valuation, if achieved, would place Shein’s IPO broadly alongside H&M, worth about $26-billion, but it will be well below Uniqlo-owner Fast Retailing at $161-billion and Zara parent Inditex at $208-billion.

Shein won approval from the China Securities Regulatory Commission (CSRC) for its Hong Kong listing on 10 July, clearing the way for a listing after failed attempts in New York and London.

The company has said in its draft prospectus that it intends to use proceeds from the offering to fund technology investments, global brand-building, corporate responsibility initiatives and general corporate purposes. — Summer Zhen, Selena Li, Helen Reid and Yantoultra Ngui, (c) 2026 Reuters