Shein is set to slash target London IPO valuation

Sources said the fast-fashion giant is expected to cut its target valuation in the potential London listing from £50bn to around £40.2bn, according to Reuters.

This valuation would be nearly a quarter less than Shein’s 2023 fundraising value amid ramped-up headwinds.

This comes after news earlier this week that new US president Donald Trump’s administration is planning to close the “de minimis” duty exemption in the US.

Both Shein and its rival Temu have relied on the ‘de minimis rule’, which allows imports valued under $800 (£645) to enter the US duty-free by shipping small orders directly to consumers.

Analysts and industry sources have speculated that the removal of the rule could impact Shein’s profitability and increase product prices but Shein is yet to comment on the matter.

The fast-fashion giant’s IPO on the London Stock Exchange is anticipated to launch in early 2025 but a date has not been confirmed.

The IPO process to date for Shein has been complicated as a result of unanswered questions around its supply chain and legal risks, with the most recent challenges being proposed by an advocacy group for China’s Uyghur population.

Shein also made headlines after being accused of “wilful ignorance” when struggling to answer questions about its supply chain in front of MPs at the Business and Trade Committee last month.