Shein is exploring a reduction in the investment cost for certain late-stage shareholders as it prepares for an initial public offering on the Hong Kong Stock Exchange.
The move, reported by Bloomberg News, suggests the retailer is adjusting its financial structure to accommodate a lower valuation ahead of its public debut.
The company is targeting a September or October debut, with plans to sell up to 8% of its equity.
This development marks a shift from the company's earlier target of a $40 billion to $50 billion market capitalization.
Investors have grown increasingly skeptical of those initial figures amid signs of slowing momentum in the fast-fashion sector.
By resetting costs for recent backers, Shein aims to align expectations with current market realities and secure a smoother path to listing.
The company is targeting a September or October debut, with plans to sell up to 8% of its equity.