Shein wins China's approval for Hong Kong IPO

China's securities regulator approved Shein to issue up to 341.6 million shares on the Hong Kong Stock Exchange, ending years of failed U.S. and London listing attempts.reuters+1
The company could sell up to 8% of its shares, with a possible valuation far below its $100 billion peak in 2022, according to Reuters.reuters+1
Analysts say the listing, potentially one of Hong Kong's largest IPOs in recent years, reinforces the city's draw for major international offerings.scmp

Fast-fashion giant Shein secured approval from China's securities regulator on Friday to pursue a Hong Kong initial public offering, clearing the final major hurdle for a company that spent years trying — and failing — to go public in the West.

The China Securities Regulatory Commission posted a notice on its website approving Shein Global Holdings to issue up to 341.6 million H shares on the Hong Kong Stock Exchange, according to Reuters and the South China Morning Post. The company could aim to list as early as September or October, sources familiar with the matter told Reuters, with a possible valuation of $40 billion to $50 billion.reuters+3

A Long Road to Market

The approval caps a turbulent journey for Shein, which was founded in China in 2008 but later moved its headquarters to Singapore. The company previously pursued listings in both New York and London, but those efforts stalled amid regulatory scrutiny in the United States and Europe over its supply chain practices and tax arrangements.scmp+1

Shein had attempted to distance itself from China as its global profile grew, despite most of its suppliers being based on the mainland. More recently, however, the firm shifted course and sought to build closer ties with Beijing as overseas listing options evaporated.scmp

The company has indicated it could sell up to 8% of its shares in the offering, according to Reuters. The targeted valuation of $40 billion to $50 billion represents a markdown from its peak private valuation of roughly $100 billion in 2022.kavout+1

What It Means for Hong Kong

Analysts said the approval was a positive signal for Hong Kong's equities market. "While one listing alone will not transform the IPO landscape, it reinforces the city's ability to attract large, internationally relevant listings," said Matteo Giovannini, senior finance manager at the Industrial and Commercial Bank of China, as quoted by the South China Morning Post.scmp

The listing, if completed on the expected timeline, would rank among Hong Kong's largest IPOs in recent years and mark one of the most high-profile Chinese tech-related offerings since Beijing tightened oversight of overseas listings in 2021.

Sources (15)