This figure stands in sharp contrast to the nearly $100bn valuation Shein achieved in a 2022 fundraising round, highlighting mounting challenges facing the company.
Shein’s current IPO marketing price band is in the $25bn to $28bn region, a further reduction from the previously reported $30bn to $40bn target earlier this month, Reuters reported citing people familiar with the matter.
This figure is also significantly below the expected $40bn to $50bn valuation reported last month.
Shein's Hong Kong share sale could come as soon as late August, with the company expected to issue up to 341.6 million shares, representing about 8% of its total shares in the offering.
At a $25bn valuation, the IPO could raise as much as $2bn, a fourth source told Reuters.
The company’s valuation and investor appetite have been hit by a combination of factors, including a dramatic slowdown in revenue growth, a rise in trade costs, increasing regulatory scrutiny, and fiercer competition.
Once a fast-rising e-commerce player, Shein expanded its low-cost clothing offers to about 160 countries, but recent government crackdowns on the sale of cheap Chinese-made goods in major markets including the US have dented growth prospects and profits.
Shein posted year-on-year net revenue growth of 41.1% in 2023 and 20.7% in 2024, but growth slowed to just 8% last year, with total revenue reported at $41.8bn.
The slowdown continued into 2026, with first quarter revenue up by only 1.1%, reflecting the impact of US customs duties and tariffs imposed since May 2025.
In financial filings cited by Reuters, Shein reported a net loss of $99m for the first quarter of 2026, alongside $328m in fair value losses on convertible shares.
For 2025, net income stood at $2.06bn. Based on these figures, a $25bn valuation puts its IPO price at roughly 12 times earnings.
The new, lower valuation may directly influence the allocation of shares between founders and pre-IPO investors, due to deal provisions that require additional shares to be issued if the final IPO price fails to meet previously agreed thresholds, Reuters reported.
Adding to the pressure, Shein recently lost a copyright infringement case against its budget rival Temu, further clouding investor sentiment about its competitive position.
The fashion retailer began seeking approval for a Hong Kong IPO from Chinese authorities last August, but reportedly faced a lengthy wait for clearance, with the decision requiring sign-off from senior levels of the Communist Party, according to sources with direct knowledge of the process.
Shein is expected to debut on the Hong Kong stock market on 28 August.
