Shein is targeting a valuation of around $25 billion for its planned Hong Kong initial public offering, according to Reuters, citing unnamed sources familiar with the matter. That figure represents roughly a quarter of the $98.2 billion valuation investors assigned the company during a 2022 funding round.
Two sources said a $25 billion figure was the most probable outcome, while a third pointed to a $25 billion to $28 billion window tied to the offering's price band. The new target is below the $30 billion to $40 billion range the outlet reported Shein was pursuing at the start of this month, after the company began investor meetings. Shein is aiming to launch the offering later this week.
A $25 billion valuation would place the deal's gross proceeds at as much as $2 billion, given that Shein intends to float up to 8% of its shares. With 2025 net income of $2.06 billion, a $25 billion market cap implies a price-to-earnings multiple of approximately 12.
Several investors who sat through Shein's roadshow or examined its recent accounts expressed doubt to the outlet that the company's expansion could ever again support a valuation anywhere near its 2022 high. Revenue expansion decelerated sharply, from 41.1% in 2023 and 20.7% in 2024 to just 8% last year, when Shein's total revenue reached $41.8 billion. In the first quarter of this year, revenue grew just 1.1% as U.S. customs duties and tariffs imposed since May 2025 weighed on the business.
Shein warned in IPO filings that the tariff-driven sales decline hitting its U.S. business could spread to Europe, its largest market, representing 35% of 2025 revenue. The company said it shifted most of the additional tariff burden onto consumers through price increases starting in May 2025, a move that weighed on U.S. net revenues through the rest of that year. U.S. revenue slid more than 3% from 2024 to 2025 and fell 14% in the most recent first quarter compared with the same period a year earlier.
In the first quarter of 2026, Shein posted a $99 million net loss, a reversal from the $395 million profit it earned in the same period a year earlier; its Hong Kong Stock Exchange filings also showed $328 million in losses tied to the fair value of its convertible shares.
A lower valuation also carries financial consequences for certain early investors. Reuters noted that Shein's prospectus obligates the company to hand over more shares to certain early backers should the final listing price come in beneath mutually agreed levels. The company's path to a public listing has included failed attempts to list in New York and London before Chinese regulators approved the Hong Kong offering on July 10.
Shein did not provide a response when the outlet sought comment.