Report: Shein May Cut Valuation to $30 Billion Ahead of IPO

Shein is reportedly being pressured by investors to cut its valuation to $30 billion ahead of its planned initial public offering (IPO).

The valuation would be down from $100 billion in 2022, $66 billion in 2023 and $45 billion in January 2024, Bloomberg reported Monday (Feb. 17).

Investors suggested that a cut in Shein’s valuation is needed because of the difficulty the company has faced in its attempt to go public, the growing uncertainty around global trade and political tensions, and President Donald Trump’s decision to eliminate for goods from China the de minimis rule that has allowed packages worth less than $800 to enter the U.S. tariff-free, the report said, citing unnamed sources.

Shein did not immediately reply to PYMNTS’ request for comment.

It was reported Feb. 7 that the company was considering cutting its valuation in a potential London IPO to $50 billion after the U.S. imposed the tariff on small packages.

The de minimis exemption helped Shein keep its prices low when shipping goods from China to U.S. customers, with the U.S. being the company’s biggest market.

Shein reportedly shifted the focus of its IPO efforts to London after facing numerous challenges in the United States.

The company faced bipartisan public scrutiny in the U.S. due to concerns over national security, alleged links to forced labor and claims of an unfair competitive advantage.

These concerns center on questions about Shein’s relationship with China and its potential impact on data privacy and security. Shein is now headquartered in Singapore, but the company was founded in China and retains much of its supply chain in that country.

It was reported in June that Shein confidentially filed for an IPO in London although it would have preferred to go public in the U.S.

London emerged as an alternative site that would allow Shein to go public without many of the hurdles it faces in the U.S.

The chief executive of the U.K.’s Financial Conduct Authority, Nikhil Rathi, reportedly opened the door for Shein to go public there by saying in December, without mentioning the company by name, that decisions about public listings were based on company disclosures and not “every aspect” of their corporate behavior.

In January, it was reported that Shein planned to launch its IPO in London by the middle of the year, as soon as April, pending regulatory approvals.