Shein has postponed its planned Hong Kong initial public offering to September 1 from August 28, citing softer investor demand and weaker market conditions. The Singapore-based online retailer is targeting a valuation of $26 billion to $27 billion, a significant reduction from its $100 billion valuation in a 2022 private funding round.
The company had previously aimed for a $30 billion to $40 billion valuation when investor roadshows began earlier this year. The revised target reflects a broader pullback in appetite for new listings, particularly among high-growth consumer technology firms.
UBS Group’s asset management unit is among the cornerstone investors committing to purchase shares ahead of the IPO, marking its first direct investment in Shein. A spokesperson for the bank declined to comment on its participation. Additional existing shareholders are in discussions to join the cornerstone group, though final agreements have not been confirmed.
Cornerstone investors typically agree to lock up their shares for six months post-listing. The delay follows reports of slower revenue growth and rising operational costs, which have weighed on investor sentiment. The company may also offer payouts to early backers alongside share conversions at reduced prices to lower their effective investment costs.
Shein’s emergence as a disruptive force in fast fashion had drawn comparisons to established retailers such as H&M and Zara in recent years. The company’s valuation trajectory underscores the challenges facing high-profile startups navigating public markets amid shifting macroeconomic conditions.
