Shein's £37bn IPO valuation under pressure as EU crackdown knocks growth

Shein's £37bn IPO valuation under pressure as EU crackdown knocks growth reports that Shein may face a lower valuation for its long-awaited Hong Kong listing as new EU import charges weigh on sales and profits. The online fashion retailer is targeting a valuation range of £30bn to £37bn, below the roughly £74bn value it received during a 2022 funding round, while some investors suggest expectations could drop further toward about £22bn. The pressure is linked to an EU customs fee of about £2.55 on low-value ecommerce imports introduced this month, applying per customs category within parcels worth under £128. The article notes that a single order covering five product types could add nearly £13 in duties. Europe makes up around a third of Shein revenue and is described as especially vulnerable due to its price-sensitive customer base. Shein has responded by expanding warehouse capacity in Wroclaw, Poland, shifting popular items to be shipped in bulk, and reducing European advertising while reviewing consumer reactions to higher prices. Confidential Reuters-cited figures put last year’s global sales at over £30bn and net profit near £1.5bn. Shein’s latest Singapore filing showed about £27.5bn revenue and £958m profit in 2024, with a public filing expected by end of July and a Hong Kong float targeted for September.