Fast-fashion retailer Shein is reportedly considering adjusting investment terms for late-stage investors to reflect a lower valuation of around $40 billion ahead of its planned Hong Kong IPO. The company may offer a mix of cash and shares to reduce the cost base for these investors.
Shein's potential adjustment of investor terms signals a possible recalibration of its valuation expectations ahead of its IPO, which could impact investor sentiment and the overall success of the listing.
Fast-fashion retailer Shein is reportedly considering adjusting investment terms for some late-stage investors to align with a lower anticipated IPO valuation of around $40 billion. This move, reported by Bloomberg News citing sources familiar with the matter, could involve offering a mix of cash payouts and additional Class B shares to investors in its pre-Series D, Series D, and Series D+ funding rounds.
Deliberations are ongoing, and the final terms will depend on the valuation Shein secures during its Hong Kong IPO. The company's recent financial performance, including a $99 million net loss in the first quarter compared to a $395 million profit in the same period last year, has raised questions about its valuation.
Shein did not immediately respond to a Reuters request for comment, and Reuters could not immediately verify the report.