Shein’s executive chairman to step down as Hong Kong IPO nears

Donald Tang, the executive chairman of fast-fashion retailer Shein, will step down from his role as the company's long-pursued public offering nears completion, according to a Reuters exclusive published on Monday citing three sources with direct knowledge of the matter.reuters

Tang, a Chinese-American former Bear Stearns vice chairman who joined Shein in late 2022, served as the Western-facing frontman for the company's secretive founder, Chris "Sky" Xu. His primary mission was steering the company toward an IPO — an effort that spanned multiple failed attempts to list in New York and London before ultimately pivoting to Hong Kong.wtaq+2

A Long Road to Listing

Tang's departure comes just days after Shein secured a critical milestone: approval from the China Securities Regulatory Commission to proceed with its Hong Kong listing. The regulator's notice, published on July 9, authorized Shein to issue up to 341.6 million shares on the Hong Kong Stock Exchange.wwd

Reuters Thomson Reuters Corporation ↗ 3.55% reported that Shein could aim for a September or October listing, with a possible valuation of $40 billion to $50 billion — a steep decline from the $100 billion valuation the company achieved in a 2022 fundraising round. Shein has indicated it could sell up to 8% of its shares, though the final level is expected to be lower.money.usnews

Tang's Legacy and Transition

Tang is expected to transition into a senior adviser role. During his tenure, he navigated a series of regulatory and geopolitical hurdles that derailed earlier listing attempts. Shein's U.S. IPO application stalled amid pushback from American lawmakers, and its subsequent London bid also faltered.fortune+3

Bloomberg reported that Shein and its advisers have been moving ahead with preparatory work in recent months as discussions with Chinese regulators yielded increasingly positive signals.finance.yahoo

What Comes Next

The IPO, if completed on the projected timeline, would mark one of the largest listings in Hong Kong in recent years. Shein must complete the issuance and listing process within 12 months of the regulator's approval. The company plans to compensate early investors for the decline in valuation by giving them funds to purchase shares in the offering.wwd+1

Tang's exit leaves Sky Xu, who has long avoided public appearances, facing the scrutiny that comes with leading a publicly traded company.wtaq