Shein targets up to $90 billion valuation in US IPO
Shein is touting its hopes for a valuation of as much as $90 billion as it lays the groundwork for an eventual US initial public offering, a level that far exceeds how the fast-fashion giant is valued in private trades, according to people familiar with the matter.
The company has told prospective investors that it’s aiming to fetch a valuation of $80 billion to $90 billion in a listing, the people said. The timing of the share sale remains uncertain given the market volatility, according to the people.
In private trades, Shein’s valuation has dropped below the $66 billion it got in a funding round in May, the people said.
Stakes that have recently changed hands in the secondary market valued the company at around $50 billion to $60 billion, the people said.
While valuation in private trades doesn’t necessarily reflect the company’s actual valuation, the gap underlines investor concerns over Shein’s challenges ranging from intensifying competition to allegations of copyright thefts and potential use of forced labor. It may also complicate Shein’s ambitions for a blockbuster listing.
Shein was the world’s third most valuable startup in 2022, when a funding round valued the company at $100 billion.
Its valuation has since dropped along with other startups and technology companies as investors grew wary toward risk assets amid uncertain economic outlook and higher interest rates. Valuation of ByteDance Ltd., the parent of short-video hit TikTok, fell to below $300 billion in secondary market in July, down at least 25% from last year, Bloomberg News has reported.
Deliberations are ongoing and no final decision has been made regrading Shein’s IPO including its valuation and timing, the people said.
