Shein Is Said to Weigh Cost Reset for Late Backers Before HK IPO

(Bloomberg) — Shein Global Holdings Ltd. is considering lowering the cost of investment for late backers that came in at an up to $64 billion valuation, people familiar with the matter said, as the fast-fashion retailer prepares for a Hong Kong listing at a much lower value.

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The company may hand out a combination of cash payouts and free additional Class B shares to investors in its Series pre-D, Series D and Series D+ rounds, the people said, asking not to be identified discussing a private matter. The move will help lower the cost base from those investors to a roughly $40 billion valuation, which will be more aligned with the planned initial public offering, the people said.

Considerations are ongoing and no final decisions have been made, the people said. The amount of the cash payouts and additional shares handed to these investors will depend on the valuation Shein gets in the IPO, they added.

A representative for Shein didn’t respond to a request seeking comment.

Coatue Management, HSG and General Atlantic are among the investors that participated in Shein’s Series Pre-D, D and D+ funding rounds, according to the company’s prospectus, which also mentioned plans to compensate some investors via cash and Class B shares to match the IPO, without disclosing any terms.

Founded in mainland China and now headquartered in Singapore, Shein operates as an online fast-fashion retailer known for its direct-from-supplier model. The company, which serves consumers across 160 markets, has secured a key approval from the China Securities Regulatory Commission.

The company disclosed slowing profitability and revenue growth in the first detailed look at its finances ahead of the listing. It posted a loss of $99 million in the first three months of 2026, versus a $395 million profit a year earlier, while revenue rose just 1.1% to $9.05 billion.