Shein’s IPO is being pitched at under $30 billion. Four years ago it was worth $100 billion.

TL;DR

Shein advisers pitching HK IPO at sub-$30B, down 70% from $100B+ peak. Q1 net loss $99M. Net profit fell from $3.4B to $2B. Margins halved to 4.9%. Tariffs, Temu competition, and lost de minimis exemption crushing model.

Shein’s advisers are pitching the fast-fashion giant to investors at a valuation below $30 billion for its Hong Kong IPO, a roughly 70% drop from the $100 billion-plus valuation it hit in a 2022 private fundraising. Internally, Shein set a target of $30 billion. If it IPOs lower, the company may have to consult existing investors before proceeding. One person familiar with the roadshow said investors had shown interest at a valuation “in the mid-to-high twenties.” Chinese regulators approved the listing last month, ending a four-year journey that failed in both New York and London.

The financials explain the discount. Net profit peaked at $3.4 billion in 2024 and fell...

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