Shein’s stock listing is almost here: Why the fast fashion giant has a much smaller valuation for its upcoming IPO

Fast fashion giant Shein Global Holdings Limited is planning to make its long-awaited stock market debut in Hong Kong next month. Best known for producing and selling inexpensive clothing and apparel, Shein was founded in 2008 in China, but is now headquartered in Singapore. The company has been a big hit with younger consumers and saw its sales and user growth soar during the pandemic-era lockdowns. Its valuation reportedly topped out at around $100 billion in 2022. However, weaker sales, higher costs, and geopolitical tensions have taken their toll, and with its market debut, Shein is now targeting a valuation of closer to $27 billion, a filing on Monday reveals—a nearly 75% decline over four years. The company has flirted with IPOs in both London and New York in recent years, but scuttled those plans for several reasons, including challenges by U.S. lawmakers. Current Secretary of State Marco Rubio, while serving as a senator, led the charge to urge U.S. regulators to stop Shein’s IPO process in early 2024, arguing that its reporting would not be transparent. Almost three years later, Shein appears primed to finally go public, albeit with a considerably downsized valuation. Why…