HONG KONG — Online fast-fashion retailer Shein is planning to launch its Hong Kong initial public offering (IPO) as soon as Wednesday of next week, two people with knowledge of the matter said on Tuesday.
The Singapore-based company has been marketing the share offering to investors this week, said one of the two sources and a third source with knowledge of the marketing plans.Shein is targeting a valuation between $30 billion and $40 billion in the IPO, Reuters reported last week.The long-awaited float comes as slowing revenue growth and weaker core earnings weigh on Shein’s business, while shrinking margins have also raised concerns its breakneck expansion is running into headwinds from higher trade costs, tighter regulatory scrutiny and intensifying competition across global e-commerce.The retailer, known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, swung to a $99-million quarterly loss after the US removed an import duty exemption on small packages and a $328-million fair-value charge on convertible redeemable preferred shares following an accounting change.The company’s target valuation with the IPO marks a dramatic reset from earlier private fundraising rounds that valued Shein at $98.2 billion in 2022, before falling to $64 billion in 2023 and April 2024.