(BFM Stock Exchange)-According to Reuters, the valuation of the Fast-Fashion giant could be revised downwards for its IPO due to the abolition of an advantage for sending its products to the United States.

The valuation of Shein could be lowered by almost 25% to $ 50 billion during its Introduction to the Stock Exchange (IPO) of London, the latest announcements of the US government weighing on the prospects of the “fast-food” specialist (mode ephemeral), according to three sources close to the file.

The valuation of Shein could be revised downwards depending on the impact of the abolition of the “minimis” exemption for Chinese products in the United States, the group’s leading market, according to a source close to the file. The evaluation of this impact will take time, adds this source.

Deletion of the “minimis” rule

Donald Trump has signed an executive order revoining Chinese products the “minimis” rule, which exempt from customs duties for shipments of a value of less than 800 dollars and which allowed Shein to offer very low prices to its American customers .

The abolition of this exemption could weigh on Shein’s profitability and increase its products in the United States, according to analysts.

Shein intends to break into the stock market during the first half of this year, and its last fundraising, in 2023, valued the company 66 billion dollars, a drop of almost 30% compared to its valuation reached in 2022, said sources close to the file.

Shein did not respond to a request for comments from Reuters. A source in the British government has always declared that Shein is rating on the London Stock Exchange.

The financial regulator (FCA) has not yet approved the group’s IPO, another source said. The FCA did not wish to make comments.

(With Reuters)