The fast fashion group Shein is under pressure ahead of its IPO. Following the advice of shareholders, the company is expected to reduce its enterprise value to 30 billion dollars, reports Reuters. In the most recent financing round of its investors in 2023, the company was valued at 66 billion dollars, with even higher figures previously circulating.
An IPO in the US failed last year. Shein subsequently planned to go public in London in the first half of this year. This IPO has probably also been postponed to the second half of the year after US President Trump repealed the so-called „de minimis“ rule. This rule allowed companies like Shein to import goods worth less than 800 dollars into the US duty-free.
The EU is also currently cracking down on low-cost imports from companies like Shein. It plans to check compliance with environmental standards, product safety and data privacy. The EU Commission has launched an investigation into Shein for possible breaches of consumer protection law. Among other things, the company has until the end of February to disclose details about its product recommendation systems. ek