Shein considering lower IPO valuation - report
By Abigail Townsend
Date: Friday 07 Feb 2025
(Sharecast News) - Fast fashion retailer Shein is poised to slash its valuation in a potential London listing, it was reported on Friday.
According to Reuters, citing unnamed sources familiar with the matter, the online-only budget brand is mulling reducing the valuation to around $50bn. That is nearly a quarter lower than the value assigned to it during its most recent fundraising, in 2023.
Shein has so far not commented on the report.
The potential reduction in valuation is understood, however, to be tied to US president Donald Trump's increasingly tough stance on trade with China.
Earlier this week the administration said it wanted to end an import rule, known as the section 321 de minimis exemption, that has helped Shein keep prices low in the US.
Analysts believe closing the exemption could push up prices for Shein, hitting demand and profitability.
Shein and its rival Temu account for more than 30% of all packages shipped to the US each day under the de minimis provision, Reuters said, citing a 2023 report from the US congressional committee on China.
Shein's mooted London initial public offering is already controversial, thanks to concerns about the poor working conditions in its supply chain and the significant environmental harm caused by fast fashion. Shein denies all accusations against it.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said earlier this week that closing the de minimis loophole would "likely knock potential investment sentiment and make it harder to achieve a hoped-for blockbuster valuation".
Other countries could also follow suit and look to change import rules, she warned. Last year, Superdry founder Julian Dunkerton said Shein was being allowed to "dodge tax" by importing single parcels and urged the government to take action.
Shein has long insisted its success is due to an efficient supply chain and not tax exemptions.
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