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Shein has cut their Hong Kong IPO valuation target to $25 billion dollars, according to Reuters. That’s quite a drop from the nearly $100 billion valuation investors assigned the company during its 2022 funding round. The new target is also significantly lower than the $30 to $40 billion Reuters reported Shein was aiming for at the start of this month.
Shein’s valuation has been in decline since their 2022 high as the EU and other major markets have begun cracking down on e-commerce platforms — including Temu and AliExpress — selling cheap Chinese-made goods and negatively impacting the company’s growth prospects.
News of the newly lowered target comes just days after Shein lost a copyright infringement case against Temu in the UK, further weakening their position within the market.
Despite these setbacks, the company is expected to launch the IPO by the end of the week, and is reportedly planning to issue 8% of its total shares — up to $2 billion.
Shein’s net income in 2025 was $2.06 billion, so a $25 billion valuation means investors value Shein at around 12 times their earnings.
Some of the investors who attended the company’s IPO presentations told Reuters they did not think Shein would ever return to the kind of growth that drove their 2022 valuation.
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