Shein targets September 1 for Hong Kong IPO amid valuation concerns

Shein, the online fast-fashion giant, is reportedly aiming to launch its initial public offering (IPO) in Hong Kong on September 1. This target date represents a slight delay from earlier plans, with sources indicating a potential shift from an August 28 listing. The delay is attributed to a cooling investor market, characterized by slower growth and increasing costs, which have dampened enthusiasm for Shein's stock.

Previously viewed as a disruptive force in the retail landscape, challenging established brands like H&M and Zara with its rapid supply chain and low prices, Shein now faces a more cautious investment climate. The company is targeting a valuation between $26 billion and $27 billion for its IPO. This figure is a substantial decrease from the $100 billion valuation it achieved during a private fundraising round in 2022 and falls short of its earlier IPO aspirations of $30 billion to $40 billion.

Among the cornerstone investors expected to participate in the IPO is the asset management arm of UBS Group, marking its first investment in Shein. Cornerstone investors commit to purchasing a set number of shares before the IPO and agree to a six-month lockup period. While September 1 is the current target, the listing could potentially occur a few days later, according to one source familiar with the matter. Shein has not yet responded to requests for comment.