Fast-fashion giant Shein is preparing for an initial public offering (IPO) in Hong Kong, but its valuation has dropped from $98.2 billion in 2022 to $64 billion in 2023, with the current IPO target valuation set between $40 billion and $50 billion. To compensate early investors who bought in at higher valuations, Shein has agreed to provide approximately $1.1 billion in cash compensation to Pre-D, D, and D+ round investors, and may also issue additional shares. The cash compensation will be calculated at an annualized return rate of 8% and paid in three installments. Furthermore, the company disclosed a net loss of $99 million in the first quarter of 2026, with revenue growing by 1.1% to $9.05 billion, and its U.S. operations are currently under investigation by the Federal Trade Commission (FTC).