HONG KONG: Fast-fashion retailer Shein is targeting a valuation of around US$25 billion for its planned Hong Kong IPO, sharply below the nearly $100 billion it was valued at four years ago as the company's growth has slowed.

Two people familiar with the situation said Shein's valuation was likely to be around $25 billion in the IPO, while a third source put the range between $25 billion and $28 billion, based on the offering's marketing price band.

That is below the $30 billion to $40 billion range Shein was targeting at the start of August, soon after it began investor meetings.

Founded in China in 2012, Shein sells products including $5 dresses and $10 jeans to shoppers in about 160 countries. The company is aiming to launch its long-awaited initial public offering later this week.

Shein plans to issue up to eight percent of its total shares in the IPO, according to a fourth person with direct knowledge of its plans. A $25 billion valuation would translate into an offering of up to $2 billion.

The sources declined to be named because they were not authorized to speak to the media before a public announcement of the deal terms. A Shein spokesperson did not immediately respond to a request for comment.

Shein reported net income of $2.06 billion in 2025, meaning a $25 billion valuation would price the company at around 12 times earnings.

The company's revenue growth has slowed as its biggest markets crack down on e-commerce platforms selling cheap Chinese-made goods. Shein's net revenue grew 41.1 percent in 2023 and 20.7 percent in 2024, before slowing to eight percent in 2025, when total revenue reached $41.8 billion.

Revenue grew just 1.1 percent in the first quarter of 2026 because of the impact of U.S. customs duties and tariffs imposed since May last year.

Shein also swung to a $99 million quarterly loss in the first quarter of 2026 as sales slowed. It recorded $328 million in fair-value losses on its convertible shares, according to filings with the Hong Kong Stock Exchange in July.

Some investors who attended IPO presentations or reviewed recent financial statements told Reuters they were not convinced Shein could return to the growth rates that helped value the company at $98.2 billion in a 2022 fundraising round.

A lower IPO valuation would also affect how shares are divided between Shein's founders and investors. Under the terms of its IPO filing, Shein would be required to provide additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.