Shein is considering lowering the investment cost base for some late-stage backers as it pursues a Hong Kong listing, after disclosing an FTC probe and a first-quarter net loss.
The fast-fashion retailer may offer a mix of cash payouts and additional Class B shares to investors in its pre-Series D, Series D and Series D+ rounds, aiming to align their positions with an anticipated IPO valuation of around $40 billion. The company seeks a valuation of $30 billion to $40 billion for the debut, which could come as early as mid-August, marking a steep reset from its $98.2 billion peak in 2022. Some potential cornerstone investors are pushing for a figure closer to $30 billion or $32 billion.
Shein began pre-deal investor meetings last week in New York, Boston and San Francisco, following listing approval from the China Securities Regulatory Commission on July 10.