Shein postpones its London IPO: market challenges and changing strategies

By: Trademagazin Date: 2025. 02. 18. 11:44

Popular Chinese online fashion retailer Shein has postponed its planned IPO on the London Stock Exchange. The decision was made amid a number of market developments, including the issue of new import tariffs imposed by the United States and a significant decline in the company’s valuation. The postponement gives Shein the opportunity to better adapt to changing market conditions and stabilize its position in the eyes of investors, writes Pénzcentrum.

Valuation Drop and Stock Market Question Marks

Shein’s market valuation has fallen significantly in the past two years. While the company was valued at $66 billion (approximately €60 billion) during a financing round in 2023, it was recently preparing for an IPO of only €50 billion. However, investors are calling for a further reduction, with some expectations that the value could fall to as little as €30 billion.

Shein had originally planned to go public in the first half of 2024, but it is now likely to be pushed back to the second half of the year. This delay could help the company adjust to trading conditions and convince investors of its stability.

Impact of US Import Tariffs

One of Shein’s largest markets is the United States, where the government could face further obstacles with the expected abolition of the “de minimis” rule. This rule has previously allowed Shein to import products worth less than $800 (approximately €770) into the United States duty-free. Its abolition could result in significant additional costs for Shein, reducing profitability.

The situation is further exacerbated by the additional 10% import tariff imposed by the new US President, Donald Trump, on all products originating in China, which could also increase in the future. This move poses a significant risk to Shein’s business model, which has so far been based on low production costs and aggressive pricing.