Key facts
- Shein has received approval from the Hong Kong stock exchange listing committee for its IPO.
- The company is targeting a valuation between $40 billion and $50 billion for its listing.
- New EU fees of €3 on low-value e-commerce imports are expected to affect Shein's sales and profits.
- Europe accounts for one-third of Shein's revenue.
- Shein reported $37 billion in revenue and $1.29 billion in profit in 2024.
Shein has secured approval from the Hong Kong stock exchange listing committee for its initial public offering, moving closer to a debut in the Asian financial hub. The fast-fashion retailer is aiming for a valuation between $40 billion and $50 billion, a figure that faces potential pressure from new European Union e-commerce fees. These fees, amounting to €3 on low-value imports below €150, are expected to impact Shein's sales and profitability, particularly as Europe accounts for one-third of its revenue. In 2024, Shein reported $37 billion in revenue and $1.29 billion in profit. Analysts suggest that a valuation around $30 billion might be more attractive given the competitive landscape and the impact of the EU fees. Shein has reportedly reduced its advertising spending in Europe and is expanding warehouse capacity to mitigate these challenges, contrasting with previous strategies of increasing marketing efforts.