Online fast-fashion retailer Shein is reportedly targeting an initial public offering (IPO) valuation which is only a quarter of the $100 billion posted in a share sale four years ago, according to Reuters.

Citing two people familiar with the matter, the news outlet reported that Shein’s value was likely to be around $25 billion when it IPOs in Hong Kong. A third source told Reuters that the valuation could be between $25 and $28 billion, based on the marketing price band for the offering.

This is already lower than the $30 to $40 billion the company was reportedly targeting at the start of the month, itself a fall from July’s figure of $40 to $50 billion.

The fall in value comes after crackdowns by major markets on e-commerce platforms selling cheap, and frequently dangerous, products manufactured in China. Shein in particular has faced a series of lawsuits and fines this year, with formal probes ongoing by the European Commission and Irish data protection watchdog.

The company has also been hit hard by increased protectionism in the form of tariffs, which pushed the company into a $99 million loss for the first quarter of 2026, a fall of almost half a billion dollars compared to the year before.

The company is aiming to launch its IPO later this week, according to Reuters.

A fourth person with knowledge of Shein’s plans told the newswire that it is planning to offer up 8 per cent of its shares, translating to an offering size of up to $2 billion at a $25 billion valuation. Based on its income of $2.06 billion in 2025, this would mean the company floats at around 12 times earnings.

Shein did not immediately respond to Reuters’s request for comment.

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