Shein is targeting a valuation of $30 billion to $40 billion for its upcoming initial public offering in Hong Kong, according to sources familiar with the matter.
The online fashion retailer aims to list as early as mid-August, marking a significant shift from previous ambitions that placed its market value between $40 billion and $50 billion.
1 billion profit in its draft prospectus, which provided a clearer picture of its financial health ahead of the public offering.
The downward revision reflects a more cautious approach as the company navigates a challenging environment for tech and consumer discretionary listings.
Investors have grown increasingly skeptical of the higher valuation bands, citing signs of slowing momentum in the fast-fashion sector and broader market headwinds.
The recalibration suggests Shein is prioritizing a successful debut over maximizing the initial price tag, a strategy that may help secure stronger institutional backing.
This development follows Shein’s recent disclosure of a $2.1 billion profit in its draft prospectus, which provided a clearer picture of its financial health ahead of the public offering.