The expected valuation of SHEIN, the Chinese fast-fashion e-commerce giant planning an initial public offering in Hong Kong, has fallen to $25 billion to $28 billion recently, down from $30 billion to $40 billion earlier this month. According to people familiar with the matter, the company is expected to begin the IPO process this week and list on the 28th. Its IPO prospectus published last month showed a net loss of $99 million in the first quarter, and some investors have voiced doubts about whether it can regain the growth it had when it was valued at nearly $100 billion in a 2022 funding round. The lower valuation could pressure SHEIN's finances, and under the terms of its IPO application, if the company's value falls below an agreed threshold, it is required to offer additional shares to some pre-listing investors.
IPO valuation cut to $25-28B from $30-40B, with net loss and doubts about growth, pressuring finances and requiring extra shares if below threshold.
