Shein CEO Says 'Zero Conversations' About Slashing $66B Valuation Ahead Of IPO, Backers Unfazed Amid Trump Tariff Woes

Donald Tang, the Executive Chair of Chinese fast-fashion retailer Shein, assured that the company is preparing for a London listing while dismissing concerns about the company’s valuation.

What Happened: Shein initially planned a New York listing for late 2023 but redirected its focus to the U.K. after the U.S. Securities and Exchange Commission (SEC) rejected its proposal. The fast-fashion retailer has decided to go ahead with the listing despite U.S. President Donald Trump's decision to eliminate the “de minimis” duty-free exemption for Chinese imports valued under $800. Tang stated that the company "has always had a globalized model, so we've already started to do global diversification", as reported by the Financial Times.

Shein’s valuation stood at $66 billion during its latest funding round in 2023. However, some stakeholders have been pushing for a reduction in the valuation to around $30 billion, a move that could expedite its IPO in the first half of this year.

Tang revealed that none of the existing investors, including Sequoia China (now HongShan), General Atlantic, and Abu Dhabi sovereign wealth fund Mubadala, have expressed concerns about Shein’s valuation in the lead-up to its planned IPO.

Although the company’s valuation is considerably lower, its flotation would still be among the largest on the London market this decade, as per the FT.

Tang confirmed that there have been “zero conversations” about reducing its valuation among Shein’s management. “When we are actually going public, there will be that question [about valuation], but we’re not going public right now,” he stated.

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Why It Matters: Tang’s comments come in as Shein faces stiff competition from rival group Temu and uncertainty over the future of a key exemption to U.S. import duties. Additionally, sources informed the FT that the company’s net profit declined by 40% to $1 billion in 2024. However, Tang asserts that investors are “very happy” as the company continues to expand successfully and profitably on a large scale while enhancing efficiency and minimizing waste.

Furthermore, Shein, along with Amazon and Temu, is under regulatory scrutiny from the EU for allegedly selling dangerous or illegal products online. This could potentially impact the company’s performance and reputation, making its upcoming listing a significant event to watch.

Photo Courtesy: Yau Ming Low On Shutterstock.com

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.