Shein is preparing to launch a Hong Kong IPO as early as next week, targeting a valuation of about $35 billion and proceeds of as much as $2.8 billion, but investor discussions have centered at lower levels. The Financial Times reported that advisers recently pitched the deal below $30 billion, while one person familiar with the matter said the company's internal benchmark is $30 billion and some investors have signaled willingness to buy shares only at $25 billion to $29 billion. If pricing falls below that internal threshold, Shein may need to reopen talks with existing investors. The valuation debate marks a sharp comedown from the more than $100 billion level Shein reached in 2022 and reflects both weaker fundamentals and a tougher regulatory backdrop. Listing documents show the Singapore-headquartered company generated more than $40 billion of revenue in 2025 with net profit of nearly $2 billion, down 38.7% from a year earlier, before posting a $99 million net loss in the first quarter of 2026 on $9.05 billion of revenue, up 1.1%. Shein has also warned that new European Union fees on low-value parcels, following similar U.S. changes to de minimis treatment, will pressure growth and margins as it pursues a Hong Kong listing after earlier plans in New York and London ran into regulatory scrutiny.