Shein Pushes Hong Kong IPO To September 1 Amid Slower Growth, Rising Costs

Shein is targeting September 1 for its Hong Kong initial public offering (IPO), although the listing could be delayed by a few days, according to a Reuters report. The company had earlier been aiming for an August 28 debut.

The latest timeline comes as Shein prepares for a Hong Kong listing against a backdrop of slower growth and rising costs, which have weighed on investor appetite for the fast-fashion retailer. The September 1 date is currently a target rather than a confirmed listing date, according to the report.

Shein’s Valuation Drops Sharply

Shein is targeting a valuation of $26 billion to $27 billion for the IPO, according to a source with direct knowledge of the matter cited by the news agency. That would represent a sharp decline from the $100 billion valuation the company achieved in a private fundraising round in 2022.

The valuation target is also below the range Shein had previously sought when investor meetings for the IPO began. At that stage, the company was looking for an IPO valuation of $30 billion to $40 billion.

The change highlights the gap between Shein’s earlier private-market valuation and what it is now targeting for a public-market listing. The company’s IPO plans have therefore shifted both in terms of timing and valuation.

Slower Growth Tests Investor Appetite

The delay in Shein’s Hong Kong listing was first reported by the South China Morning Post. The latest target comes after the company had earlier aimed for an August 28 debut.

Shein was seen just a few years ago as a disruptive challenger to established fashion brands such as H&M and Zara, driven by its rapid supply chain and ultra-low prices.

However, slower growth and rising costs have dampened investor appetite for the company, Reuters reported. The weaker investor interest comes as Shein seeks to enter public markets at a valuation significantly below the level it commanded during its 2022 private fundraising.