IPOS - Shein's Backers Look To Offload Shares At 30% Discount Amid Fading Hopes For IPO | Benzinga
The highly anticipated initial public offering (IPO) of Shein, a global online fashion giant, is facing a significant setback as investors are struggling to sell shares at a 30% discount in private market deals.
What Happened: Investors are finding it challenging to offload Shein shares in private market transactions, with the company’s valuation dropping to as low as $45 billion, reported Bloomberg on Thursday. This is a significant decrease from the $66 billion valuation Shein achieved during a fundraising round in May.
Despite the reduced valuations, finding buyers for the shares has proven to be a challenge, raising concerns about further devaluation. These developments are casting a shadow over Shein’s much-anticipated IPO in the U.S., which was expected to reach a valuation of up to $90 billion.
Shein, which was once a dominant player in the cut-rate apparel market, is now facing stiff competition from Temu, a direct rival launched by Chinese e-commerce giant PDD Holdings Inc about a year ago. Additionally, major clothing brands have accused Shein of copyright infringement.