Chinese online fashion retailer Shein is reportedly eyeing a massive valuation of up to $90 billion for a potential initial public offering (IPO) in the United States. This ambitious target significantly exceeds its current private market valuation, which falls between $50 billion and $60 billion.
According to a report by Bloomberg, Shein has told potential investors that it is aiming for a valuation ranging between $80 billion and $90 billion for its future U.S. IPO. This proposed valuation marks a substantial leap from the company’s $66 billion valuation during its fundraising in May. However, the timing of this IPO remains uncertain due to market fluctuations and instability.
“The company has told prospective investors that it’s aiming to fetch a valuation of $80 billion to $90 billion in a listing, the people said. The timing of the share sale remains uncertain given the market volatility, according to the people,” Bloomberg reported.
Amid its rapid growth, Shein is expected to achieve a revenue of $24 billion in 2023, up from $16 billion in the preceding year. Notably, the company is profitable, with an estimated EBITDA of $3 billion in 2023.
While Shein’s IPO could potentially rank as one of the largest ever by a Chinese company, uncertainties persist regarding its timing due to market volatility. Additionally, the company faces scrutiny from U.S. lawmakers concerning its labor practices.
Several factors could influence Shein’s IPO valuation, including the broader stock market conditions, which greatly impact investor willingness to invest in Shein’s shares. If market conditions remain unstable or pessimistic, Shein might need to reconsider its valuation expectations.
The company’s financial performance will play a pivotal role in determining its IPO valuation. Should Shein sustain its rapid growth and profitability, it could command a higher valuation.
Equally critical is the level of demand from investors for Shein’s IPO. Greater demand would enable Shein to raise more capital and achieve a higher valuation.
Overall, it is still too early to say what Shein’s final IPO valuation will be. However, given its robust growth and profitability, the company appears poised to potentially attain a valuation of $90 billion or even more.
Founder in October 2008 in Nanjing, China by Chris Xu, an entrepreneur and expert in search engine optimization (SEO) marketing, Shein was originally named ZZKKO. Chris Xu’s expertise in SEO played a vital role in driving Shein’s expansion, leveraging online marketing tactics to connect with a broader audience.