According to people familiar with the matter, fast-fashion retailer Shein is under pressure to cut its valuation to about $30 billion. In the past, it was valued at more than three times that amount.

The people, asking not to be identified because the talks are private, said that Shein shareholders are suggesting that an adjustment is needed to help get its potential initial public offering in the UK over the line.

Shein has had a bumpy ride in its attempt to go public. Questions have been raised over its supply chain operations and labour practices while uncertainty over global trade relations and political tensions mount. The company rerouted its IPO application to London last year after its goal of listing in the US faltered.

Representatives for Shein did not immediately respond to a request for comment.

Founded in China but now based in Singapore, Shein became one of the world’s most valuable startups thanks to its high-volume, low-cost fashion. Its investors include IDG Capital, Mubadala Investment Co., Tiger Global Management, and HongShan Capital, formerly known as Sequoia Capital China.

Shein and rival Temu, owned by PDD Holdings Inc., have attracted customers in places such as the US with cheap products shipped directly from Chinese suppliers. This model has proved popular as households struggle with the rising cost of living. They also pose a challenge to Amazon.com Inc.

However, US President Donald Trump‘s policies have fueled uncertainty, including over the potential size and timing of Shein’s IPO. His decision to scrap a so-called de minimis rule removed an exemption on tariffs for parcels carrying goods worth no more than $800, a blow to Shein’s main business, as well as Temu’s.

Shein, which was valued at $66 billion in a funding round in 2023 and as high as $100 billion in 2022, confidentially filed papers in June for a London IPO. Bloomberg reported in January last year that investors were trying to sell Shein shares in private market deals that valued the company at as low as $45 billion, reflecting dwindling enthusiasm.

—With assistance from Dong Lyu and Pei Li.

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