Key facts
- Shein is planning its Hong Kong stock market debut for August 28.
- The company's expected IPO valuation is between $30 billion and $40 billion.
- Investors have raised concerns about Shein's slowing growth and rising costs.
- Shein reported a quarterly loss of $99 million.
- Changes in customs regimes in the EU and US have increased Shein's operational costs.
Fast-fashion giant Shein is planning its stock market debut in Hong Kong on August 28, with an expected valuation between $30 billion and $40 billion. This valuation is significantly down from its peak private market valuation of nearly $100 billion in 2022. Investors have raised concerns about the company's slowing growth, rising costs, and competitive pressures. Shein recently swung to a $99 million quarterly loss, partly due to changes in customs regimes in the EU and US that increased operational costs. Customer purchase frequency has remained stagnant, despite an increase in active customers. Analysts at Morgan Stanley, a sponsor of the IPO alongside Goldman Sachs and JPMorgan, estimated a fair value range of $39 billion to $52 billion.