Shein proposes cash payouts, extra shares for late-stage investors ahead of IPO

Published Aug 3, 09:09 AM UTC

Shein, the fast-fashion e-commerce giant, is considering offering guaranteed cash payouts and additional shares to late-stage investors ahead of its planned initial public offering (IPO). The company has agreed to provide backers in some funding rounds with a guaranteed cash payout equivalent to an 8% annual return. Shein is reportedly seeking a valuation of up to US$50 billion in the upcoming IPO. This move aims to reassure investors and secure their support as the company prepares for its public market debut. The proposal reflects Shein's efforts to navigate a challenging IPO environment and attract capital from late-stage investors who may be concerned about valuation and returns.