Fast-fashion retailer Shein proposes cash and stock incentives to early investors as it targets a $40B-$50B IPO valuation.
Shein will distribute $1.1 billion in cash payouts and additional shares to investors from its Pre-D, D, and D+ funding rounds. The payouts, equal to an 8% annual return, aim to offset losses from a valuation drop ahead of its Hong Kong IPO.
The company’s valuation fell from $98.2 billion in 2022 to $64 billion in 2023 and now targets $40 billion to $50 billion for the listing. Investors will receive payments in three installments by September 2026.
If the IPO prices below earlier rounds, preferred shares will convert to Class B shares at a lower price, increasing investor holdings to align with the reduced valuation.