(July 10): Shein Global Holdings Ltd got approval from the Chinese regulator to move ahead with its planned initial public offering (IPO) in Hong Kong, capping a years-long effort by the fast-fashion giant to go public.
Shein plans to sell up to 341.6 million H shares in the Hong Kong IPO, according to a statement from the China Securities Regulatory Commission (CSRC) on Friday. Bloomberg News earlier reported that the company and its advisers were moving ahead with preparations for the listing after recent discussions with the regulator had yielded more positive signals.
The company is considering raising a few billion dollars in the IPO, people familiar with the matter have said, adding that the final amount will depend on the valuation. While work is underway, there is no firm timeline and the listing could still be delayed further, the people said.
Shein had been under pressure from shareholders to cut its valuation to about US$30 billion ($38.7 billion), having in the past been valued at more than three times that amount, people familiar with the matter said last year.
“As a matter of policy, we do not comment on rumours or speculation,” said a representative of Shein earlier on Friday.
Shein unsuccessfully tried to list in the US and London before turning its sights on Hong Kong last year, while its valuation sank. Hong Kong’s stock market has also fallen this year, by about 6%, but its IPO market is fizzing, with almost US$35 billion raised in first-time share sales already.
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Shein’s initial plan to go public in the US was derailed two years ago amid scrutiny of its supply-chain and labor practices, and London was abandoned as Chinese regulators withheld their approval.
The retailer moved its headquarters to Singapore in 2021, but it remains subject to CSRC oversight because the regulator requires all firms with substantial links to China, even those that aren’t incorporated in the country, to clear its review prior to listing anywhere in the world.
Having spent years playing down its Chinese roots and marketing itself as a global company, Shein shifted tack after applying for the Hong Kong IPO last year. Founder Xu Yangtian has pledged to pour more resources in the southern Chinese trade hub of the Guangdong province, home to a sprawling network of manufacturers that churn out ultra-low-cost clothing.
| Year | Valuation (approximately) | State of play |
|---|---|---|
| 2022 | US$100 billion | Peak valuation after April funding round, topping H&M and Zara market caps combined. |
| 2023 | US$66 billion | Another funding round, but valuation coming under pressure on slower sales, ESG concerns. |
| 2024 | US$45 billion | Attempted private market deals by investors reflect dwindling appetite and valuation. |
| 2025 | US$30 billion | Shareholders call for Shein to cut its valuation. |
Shein’s valuation has been dwindling from the US$100 billion it fetched four years ago. The company has faced competition from PDD Holdings Inc-owned Temu in key markets such as the US and Europe, while tariff-induced price increases have dented consumer demand and regulators have scrutinised its operations.
Still, Shein was expecting a bumper US$2 billion in net income last year, after higher profit margins through price hikes and cost cutting helped overcome a drop in online traffic caused by US President Donald Trump’s punitive tariffs, people familiar with the matter have said.
Shein’s backers include IDG Capital, Mubadala Investment Co, Tiger Global Management and HSG.
Uploaded by Tham Yek Lee
