IPO News | Rumor has it that the valuation of SHEIN's Hong Kong IPO will shrink to a maximum of HK$312 billion in mid-month

The Zhitong Finance App learned that according to reports, the fast fashion e-commerce giant SHEIN plans to conduct an initial public offering (IPO) in Hong Kong as early as mid-August, with a valuation target of US$30 billion to US$40 billion (approximately HK$234 billion to HK$312 billion). According to reports, citing three people familiar with the matter, SHEIN began a pre-roadshow meeting with investors last week. Two of them said the deal could officially launch in mid-late this month. The relevant valuation targets and timelines have not yet been finalized, and adjustments will be made based on investor feedback. This valuation is far below SHEIN's past level. The company's valuation reached US$98.2 billion in 2022 and reached US$64 billion during private placement in April 2023 and 2024. The valuation has been drastically lowered, reflecting the challenges its business is facing.

The report mentioned that since the valuation is lower than Series D financing, the company is considering providing insurance to relevant investors. According to the report, SHEIN may pay cash and additional Class B shares to investors in its pre-D round financing, D series financing, and D+ round financing to reduce the investment costs of these investors and reduce their valuation to about 40 billion US dollars, which will be more in line with its planned initial public offering (IPO) valuation.

The report mentioned that SHEIN is still under consideration and no final decision has been made. The amount of cash and additional shares paid to relevant investors will depend on the valuation obtained by SHEIN during the IPO.

SHEIN is headquartered in Singapore and founded in China. SHEIN was approved by the China Securities Regulatory Commission to go public in Hong Kong on July 10. Previously, it tried to go public in New York and London but to no avail. The company has yet to respond to media inquiries.