Shein’s $100 Billion Valuation Falls to $26 Billion

Bloomberg's Lisa Du discusses Shein's planned Hong Kong IPO at about $26.5 billion, down sharply from its $100 billion private peak. She details why the listing is happening now, the regulatory and reputational risks weighing on the company, and its new pitch to investors centered on acquiring or partnering with other brands. The CFIUS review of the Everlane deal is flagged as a key test, while investor reception remains lukewarm. - Shein is heading toward a Hong Kong listing at around $26.5 billion, roughly a quarter of its 2022 valuation. - The IPO follows Chinese regulatory signoff after failed New York and London listing efforts. - Regulatory, geopolitical, and reputational risks include Xinjiang cotton scrutiny and US political backlash. - Shein is pitching a new growth strategy to buy or partner with brands and put them on its own supply chain. - The Everlane acquisition is seen as the biggest test of that strategy, with CFIUS review unresolved. - Investors are hesitant because Shein's valuation is similar to established peers like Zara and H&M. - Most cornerstone IPO investors are existing Shein backers, signaling caution from regular IPO investors.