Raysonho @ Open Grid Scheduler / Scalable Grid Engine
The figures and schedule for the offering are not finalized and could be adjusted based on investor feedback from meetings conducted since last week, the sources indicated.
A valuation between $30-40 billion would signify a dramatic reorganization for the firm, the publication highlights. According to Reuters, the retailer's worth after private funding rounds in 2022 was $98.2 billion, but has declined to $64 billion in 2023 and further in April 2024 because of slowing growth and rising external pressures.
One source notes that Shein is focusing on a price that sustains the shares post-IPO instead of maximizing their market worth. The source indicated that certain potential investors, who may play significant roles in the IPO, are advocating for a valuation of $30 billion or $32 billion. According to the source, Shein has held meetings with investors in New York, Boston, and San Francisco during the last week.
If a valuation of $30–40 billion is reached, the company will match H&M, which has a market cap of $26 billion. Nevertheless, Shein will continue to lag behind the Japanese firm Fast Retailing (which owns Uniqlo and other labels), valued at around $160 billion, and Inditex (parent company of Zara), valued at about $208 billion. Reuters estimates that Shein shares may trade at a multiple of 0.7–1 times 2025 sales, in contrast to H&M’s multiple of around 1.1, Inditex’s 4.6, and Fast Retailing’s 7.6.
source: reuters.com
A valuation between $30-40 billion would signify a dramatic reorganization for the firm, the publication highlights. According to Reuters, the retailer's worth after private funding rounds in 2022 was $98.2 billion, but has declined to $64 billion in 2023 and further in April 2024 because of slowing growth and rising external pressures.
One source notes that Shein is focusing on a price that sustains the shares post-IPO instead of maximizing their market worth. The source indicated that certain potential investors, who may play significant roles in the IPO, are advocating for a valuation of $30 billion or $32 billion. According to the source, Shein has held meetings with investors in New York, Boston, and San Francisco during the last week.
If a valuation of $30–40 billion is reached, the company will match H&M, which has a market cap of $26 billion. Nevertheless, Shein will continue to lag behind the Japanese firm Fast Retailing (which owns Uniqlo and other labels), valued at around $160 billion, and Inditex (parent company of Zara), valued at about $208 billion. Reuters estimates that Shein shares may trade at a multiple of 0.7–1 times 2025 sales, in contrast to H&M’s multiple of around 1.1, Inditex’s 4.6, and Fast Retailing’s 7.6.
source: reuters.com