Fast fashion retailer Shein has delayed its stock market listing in Hong Kong to early September as the company grapples with a sharp drop in its target valuation. The retailer, which was founded in China and is now based in Singapore, had originally planned to float on the exchange this month.
The group is now targeting a valuation of between £19 billion and £20 billion, and could aim for a figure as low as £19 billion. Shein was at one point pursuing a valuation of £74 billion, but its target has fallen sharply following a tariff blitz by US President Donald Trump and crackdowns on tax loopholes in the United States and the European Union.
As part of the trade crackdown, Trump scrapped an import duty exemption that previously allowed businesses such as Shein to ship small parcels to American consumers tariff-free. Import duty exemptions traditionally permit low-value direct shipments to clear customs without incurring standard tariffs or duties.
Financial Performance and Losses
The loss of tax advantages has taken a heavy toll on the retailer's financial performance. Shein lost £74 million in the three months to the end of March. That contrasts with a profit of £296 million recorded in the same three-month period a year earlier.
An initial public offering, or stock market float, enables a private company to raise capital by issuing shares to public and institutional investors on an equity exchange. Shein expanded rapidly across global markets by offering low-priced apparel shipped directly from Chinese manufacturers to international buyers.
Investor Interest and Hong Kong Float
Despite the lowered valuation expectations and quarterly loss, several major investment entities remain involved as potential key investors in the upcoming flotation. These include Chinese private equity firm Boyu Capital, an asset management arm of Swiss banking giant UBS Group, Chinese internet giant Tencent, and growth equity firm General Atlantic, which owns sportswear brand Gymshark.
UBS Group operates as a global financial services firm, while Tencent is one of China's largest technology conglomerates. General Atlantic is an American private equity business based in New York, and Boyu Capital focuses on investments across Greater China. Shein is now working toward launching its delayed stock float in early September.
