Even after cutting its expected IPO valuation to $30 billion to $40 billion from a near $100 billion private market peak, Shein faces questions over whether slowing growth, rising costs and changing market conditions justify that price tag. Five investors who attended presentations or reviewed recent financial statements ahead of a Hong Kong offering expected to launch as early as August 19 said they were not convinced fast-fashion retailer Shein could return to the growth rates that valued it at nearly $100 billion in a 2022 fundraising round.
"The future is quite challenging ... Shein at its core is still a supply chain company," one investor said, citing slowing sales growth due to fierce competition, and pressure on its core business model.
