Shein clears Hong Kong hurdle for $40bn–$50bn IPO
Sources confirm the listing committee has approved the offering, with the first public filing expected in late July. The firm is seeking a valuation significantly lower than its 2022 peak.
Shein has secured approval from the Hong Kong Stock Exchange listing committee for an initial public offering, bringing the fast-fashion retailer closer to a stock market debut in the Asian financial hub. Three people with knowledge of the matter confirmed the nod on Friday, marking a pivotal step after previous attempts to list in New York and London stalled amid regulatory scrutiny.
The approval allows the company to proceed with investor roadshows and book-building under local market rules. Shein aims to publish its first public listing filing in the week commencing July 27, according to two sources. The firm has already begun arranging marketing meetings with investors, signalling active preparation for the offering.
The retailer is targeting a valuation of $40 billion to $50 billion for the Hong Kong listing. This figure represents a substantial reduction from the $100 billion valuation achieved in a 2022 funding round, when the company first began pursuing a New York listing. The lower target reflects a recalibration of market expectations for large consumer deals.
A potential launch as early as late August is possible, though one source and a fourth source noted that the timetable and offering details are not finalised. The exact launch date remains tentative and could change depending on prevailing market conditions.
Shein reported global revenue of more than $40 billion last year, alongside net profits close to $2 billion. However, the company faces headwinds, including new fees on e-commerce parcels in Europe that are weighing on sales growth and profits. The IPO is expected to be one of Hong Kong’s most closely watched listings in recent years, serving as a major test of investor appetite.
The Hong Kong exchange declined to comment on the outcome of the listing committee hearing, which was scheduled for Thursday. A spokesperson for Shein did not immediately respond to requests for comment regarding the hearing process. The sources involved declined to be named as they were not authorised to speak to the media.
