Shein is targeting a valuation of around $25 billion for its planned Hong Kong initial public offering, according to Reuters, citing unnamed sources familiar with the matter.
That figure represents roughly a quarter of the $98.2 billion valuation investors assigned the company during a 2022 funding round
Two sources said a $25 billion figure was the most probable outcome, while a third pointed to a $25 billion to $28 billion window tied to the offering’s price band. The new target is below the $30 billion to $40 billion range the outlet reported Shein was pursuing at the start of this month, after the company began investor meetings. Shein is aiming to launch the offering later this week.
A $25 billion valuation would place the deal’s gross proceeds at as much as $2 billion, given that Shein intends to float up to 8% of its shares. With 2025 net income of $2.06 billion, a $25 billion market cap implies a price-to-earnings multiple of approximately 12. Several investors who sat through Shein’s roadshow or examined its recent accounts expressed doubt to the outlet that the company’s expansion could ever again support a valuation anywhere near its 2022 high.