Prime Highlights
- Shein secured approval for its planned Hong Kong IPO.
- The company is targeting a valuation of $40-50 billion for the listing.
Key Facts
- Shein is a global fast-fashion retailer with operations across multiple markets.
- The company reported more than $40 billion in global revenue and nearly $2 billion in net profit last year.
Background
Fast-fashion retailer Shein has received approval from the Hong Kong Stock Exchange’s listing committee for its planned initial public offering (IPO), bringing the company closer to a public listing in the Asian financial hub.
The IPO is expected to be one of Hong Kong’s biggest public offerings in recent years and will test investor demand for large consumer-focused listings. Shein turned to Hong Kong after its earlier plans to list in New York and London faced regulatory challenges.
According to people familiar with the matter, the company plans to publish its first public listing document in the last week of July. Subject to market conditions, the IPO could be launched as early as late August. The company has also started arranging meetings with potential investors ahead of the share sale.
Approval from the listing committee allows Shein to move to the next stage of the IPO process, including investor roadshows and book-building, in line with Hong Kong’s listing rules.
The company is seeking a valuation of between $40 billion and $50 billion for the offering. This is way below the $100 billion valuation that was made when it was making its first efforts for a listing on the stock exchange in the US in 2022.
Changes in the price of delivering parcels via e-commerce in Europe have impacted the sales and profitability of Shein. Regardless, Shein made over $40 billion in revenue across the world last year and a net income of almost $2 billion.
The planned listing is yet another major step in Shein’s efforts to push into the public market after earlier listing attempts got delayed.
