Shein Faces Pressure to Slash Valuation Ahead of London IPO

Online fast-fashion giant Shein is facing pressure to reduce its valuation to approximately US$30 billion ahead of its planned London listing, according to a Bloomberg News report on Monday (Feb 17), citing sources familiar with the matter.

Shareholders are reportedly pushing for a valuation adjustment to help facilitate the company’s initial public offering (IPO) in the UK. The China-founded company, led by entrepreneur Sky Xu, has yet to respond to Reuters' request for comment.

Earlier this month, Reuters reported that Shein had already planned to lower its valuation for the London IPO to around US$50 billion, down nearly 25% from its 2023 fundraising valuation of US$66 billion. This move comes amid growing market challenges and regulatory uncertainties.

Adding to the uncertainty, the Financial Times recently reported that Shein's UK stock market debut is likely to be postponed to the second half of the year. The delay follows US President Donald Trump’s efforts to close "de minimis" rules, which allow certain foreign shipments to bypass tariffs, potentially impacting Shein’s business model.

Shein had initially planned to go public in London in the first half of 2024, pending regulatory approvals from both UK and Chinese authorities, according to Reuters. However, ongoing headwinds may further delay or alter the company’s IPO strategy.