Shein Intends to Begin Its Hong Kong IPO As Early as August 19

According to two sources with knowledge of the situation on Tuesday, online fast-fashion retailer Shein plans to begin its Hong Kong IPO as early as Wednesday of next week.

According to one of the two people and a third who is aware of the marketing strategies, the Singapore-based company has been promoting the share offering to investors this week.

According to a report from Reuters last week, Shein is aiming for an IPO valuation of between $30 billion and $40 billion.

Since the information was private, the sources declined to be identified.

The long-awaited float coincides with Shein’s business being negatively impacted by slower revenue growth and weaker core earnings. Additionally, declining margins have sparked worries that the company’s rapid expansion is encountering obstacles due to increased trade costs, stricter regulations, and heightened competition in the global e-commerce market.

After the U.S. eliminated an import duty exemption on small packages and a $328 million fair-value charge on convertible redeemable preferred shares due to an accounting change, the retailer—known for selling $5 dresses and $10 jeans to customers in roughly 160 countries—saw a $99 million quarterly loss.

Compared to previous private fundraising rounds, which valued Shein at $98.2 billion in 2022 before dropping to $64 billion in 2023 and April 2024, the company’s goal valuation with the IPO represents a significant reset.