Shein is reportedly targeting a valuation of around £18.5bn for its long-awaited Hong Kong IPO, marking a dramatic fall from the more than £72bn price tag it commanded just four years ago.
The company is expected to be valued at around £18.5bn when it floats, while one source put the prospective range at between £18.5bn and £20.7bn, based on the price band being marketed to investors, according to Reuters.
It marks another sharp reduction in expectations for the online retailer, which was targeting a valuation of between £22.2bn and £29.5bn earlier this month and was valued at approximately £72.5bn in a 2022 funding round.
Shein could launch the IPO as early as this week and is understood to be planning to issue up to eight per cent of its total shares. At a £18.5bn valuation, the listing could raise as much as £1.5bn.
The reduced valuation comes as the ecommerce giant grapples with slowing growth, rising trade costs and mounting regulatory pressure across some of its biggest markets.
Shein’s revenue growth has fallen sharply from 41.1 per cent in 2023 to 20.7 per cent in 2024 and eight per cent last year, when sales reached approximately £30.9bn.
Revenue edged up just 1.1 per cent in the first quarter of 2026 as US tariffs and customs changes weighed on the business.
The retailer also swung to a roughly £73m loss during the first quarter, compared with a £292m profit a year earlier. Its 2025 net income stood at approximately £1.5bn.
Shein has faced particular pressure following the removal of the US de minimis exemption, which had allowed low-value parcels to enter the country duty-free.
The European Union has also introduced a charge equivalent to around £2.57 on low-value ecommerce imports, adding to the pressure facing cross-border online retailers.
The retailer finally secured approval from Chinese regulators for its Hong Kong listing in July following previous attempts to float in New York and London.
Its falling valuation could also affect existing shareholders. Under the terms of Shein’s IPO filing, certain pre-IPO investors are entitled to additional shares if the company’s valuation falls below agreed thresholds.
Some investors who have attended IPO presentations or reviewed the retailer’s latest financials are understood to remain unconvinced that Shein can return to the rapid growth that propelled its valuation above £70bn during the pandemic-era ecommerce boom.
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