HONG KONG — Online fast-fashion retailer Shein is planning to launch its Hong Kong initial public offering as soon as Wednesday (Aug 12) of next week, two people with knowledge of the matter said on Tuesday.
The Singapore-based company has been marketing the share offering to investors this week, said one of the two sources and a third source with knowledge of the marketing plans.
Shein did not immediately respond to a Reuters request for comment.
Shein is targeting a valuation between US$30 billion (S$38.4 billion) to $40 billion in the IPO, Reuters reported last week.
The sources declined to be named as the information was confidential.
The long-awaited float comes as slowing revenue growth and weaker core earnings weigh on Shein's business, while shrinking margins have also raised concerns its breakneck expansion is running into headwinds from higher trade costs, tighter regulatory scrutiny and intensifying competition across global e-commerce.
The retailer, known for selling US$5 dresses and US$10 jeans to shoppers in about 160 countries, swung to a US$99 million quarterly loss after the US removed an import duty exemption on small packages and a US$328 million fair-value charge on convertible redeemable preferred shares following an accounting change.
The company's target valuation with the IPO marks a dramatic reset from earlier private fundraising rounds that valued Shein at US$98.2 billion in 2022, before falling to US$64 billion in 2023 and April 2024.
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