Shein is touting its hopes for a valuation of as much as $90 billion as it lays the groundwork for an eventual US initial public offering (IPO), a level that far exceeds how the fast-fashion giant is valued in private trades, according to people familiar with the matter, reports the South China Morning Post. The company has told prospective investors that it is aiming to fetch a valuation of $80 billion to $90 billion in a listing, the people said. The timing of the share sale remains uncertain given the market volatility, according to the people.
In private trades, Shein’s valuation has dropped below the $66 billion it got in a funding round in May, the people said. Stakes that have recently changed hands in the secondary market valued the company at around $50 billion to $60 billion, the people said.
While valuation in private trades does not necessarily reflect the company’s actual valuation, the gap underlines investor concerns over Shein’s challenges ranging from intensifying competition to allegations of copyright thefts and potential use of forced labour. It may also complicate Shein’s ambitions for a blockbuster listing.