Shein Plans Initial Hong Kong IPO Within Three Months After Chinese Approval

Shein, the global online fashion giant, is targeting an initial public offering (IPO) in Hong Kong by September or October, according to a source close to the matter. The company received approval from the Chinese Securities Regulatory Commission on Friday to proceed with the listing. Reuters reported that Shein indicated it might offer up to 8% of its shares, though the final amount is expected to be lower. With a potential valuation between $40 billion and $50 billion, the capital raised is anticipated to be in the low billions.

Shein was valued at $100 billion during a 2022 funding round but plans to compensate investors for the valuation drop by providing funds to purchase shares in the IPO. The Chinese company initially sought to list in London, but Chinese authorities rejected that plan, prompting the shift to Hong Kong. This marks Shein's third IPO target; it first aimed for a New York Stock Exchange listing to gain international legitimacy and access to Western investors. However, criticism from U.S. lawmakers over allegations of forced labor and environmental damage led Shein to explore other markets.