Russ Mould, investment director at AJ Bell, said: “Appropriately enough for a business which made its name selling clothes at discount prices, Shein looks set for a cut-price IPO.
“Having seen its efforts to list in the US and UK stymied by regulatory issues and ESG concerns, Shein is set to list with a $27 billion valuation in Hong Kong, some way below its $100 billion peak value in 2022.
“The world has changed since then. Four years ago Shein was still riding the e-commerce boom seen since the pandemic but inflationary pressures, shifting consumer habits and tariffs have conspired to knock the business off course.
“Shein still has strengths as a retail business, which include identifying and latching on to emerging trends at pace, significant flexibility in its supply chain and a large global customer base.
“There are also suggestions it might move into other product categories beyond just clothing. But it will start life as a public company with plenty to prove.”
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