SHEIN, the online fast-fashion giant, is facing pressure from investors to further reduce its valuation for its planned London stock market listing, according to Bloomberg. The company has been in discussions regarding an IPO on the London Stock Exchange for the past year.
Investors are reportedly urging SHEIN to target a valuation of around US $ 30 billion for its IPO. This follows reports last month that the company was considering a US $ 50 billion valuation, which was already a decrease from a previously reported US $ 66 billion valuation. Sources suggest the further valuation adjustment is necessary to ensure the UK IPO’s success.
SHEIN, originally founded in China but now headquartered in Singapore, has encountered numerous hurdles in its efforts to go public. These include political pressure in the UK related to alleged supply chain and labor abuses.
Adding to these challenges, the Trump administration’s crackdown on tariff-free imports of small goods from China is now impacting SHEIN’s prospects. The administration plans to eliminate the de minimis rule, which currently exempts goods under US $ 800 from tariffs, and introduce an additional 10% tariff on all goods from China. SHEIN and competitors like Temu are believed to have benefited from shipping products in small packages to avoid substantial taxes. This change in policy is a key factor in the reported valuation reduction.
