Shein valued at $22B-$25B for Hong Kong IPO, a 75% drop from peak

The online fast-fashion giant Shein is heading toward one of the year's most anticipated initial public offerings with a valuation far below its former peak, as Bloomberg Intelligence pegged the company's worth at $22 billion to $25 billion — roughly a quarter of the $98.2 billion it commanded in a 2022 fundraising round.bloomberg+1

The estimate, published by Bloomberg Intelligence analysts Catherine Lim and Jason Zhu, values Shein at about 13 to 15 times projected 2027 earnings, using that year as a more normalized base after freight and tariff disruptions weigh on 2026 results. Reuters reported on August 4 that Shein is seeking a valuation of $30 billion to $40 billion for the offering, which could launch as early as mid-August. Earlier reports had placed the company's target as high as $40 billion to $50 billion.reuters+3

Investor Sweeteners and Slowing Growth

Filings with the Hong Kong Stock Exchange show Shein is offering cash payouts and additional shares to late-stage investors as it pursues the IPO at a lower valuation than previous private rounds. Investors in its Pre-D, D, and D+ funding rounds will receive a guaranteed cash payout equal to an 8 percent annual return — roughly $1.1 billion in total — on their original investment, paid in three installments through September 2026.cyprus-mail

The company posted a net loss of $99 million in the first quarter of 2026, reversing years of profitability, while full-year 2025 net profit declined by 38.7 percent. U.S. revenue fell 14 percent in the first quarter after the end of the de minimis duty-free exemption for small parcels.finance.yahoo+1

Vietnam Retreat Underscores China Dependence

A Reuters investigation published on August 10 revealed that Shein is drastically scaling back its Vietnam operations just over a year after leasing a 15-hectare bonded logistics hub near Ho Chi Minh City. The lease now covers six hectares, mass layoffs began in April, and only a handful of workers were present during a late-July site visit.indexbox+1

The retreat reflects the end of the U.S. de minimis exemption for all countries — not just China — and the difficulty of replicating the speed and low margins of Shein's Guangzhou-based supplier network. CEO Sky Xu pledged in February to invest over 10 billion yuan ($1.5 billion) in a smart supply-chain system in Guangdong province.finance.yahoo

Shein received approval from the China Securities Regulatory Commission on July 10, clearing a major bureaucratic hurdle, after previously abandoning IPO attempts in both New York and London.cryptobriefing