Shein Global Holdings Ltd is targeting a Hong Kong IPO as early as August, potentially raising $2-3 billion in its public market debut, according to Bloomberg News reports citing people familiar with the matter. The fast-fashion retailer received approval from China's securities regulator on Friday, clearing a key hurdle in its long-running quest for a public market debut. Shein could conduct investor roadshows and launch bookbuilding for the IPO once it obtains clearance from the Hong Kong Stock Exchange's listing committee, as reported by Reuters. The final fundraising amount would depend on the company's valuation and investor demand, with the timing and size of the offering still subject to change. A source told Reuters on Friday that Shein could possibly aim to list in September or October, targeting a valuation of $40 billion to $50 billion.
As reported by Reuters, The Economic Times, Bloomberg News, and AFP, the company is considering raising a few billion dollars through the IPO, with the source indicating Shein could now be aiming for a valuation of $40 billion to $50 billion in its Hong Kong listing. This represents a dramatic reduction from its 2022 valuation of up to $100 billion, which investors subsequently adjusted as the pandemic-era e-commerce boom fizzled out and opposition from politicians, retailers and regulators intensified. The company's last private fundraising round in May 2023 valued it at $66 billion. The company could possibly aim to list in September or October, with the company indicating it could sell up to 8% of its shares, although the final stake sold is likely to be lower, raising low-single-digit billions of dollars. Given the lower valuation, Shein would also compensate investors by providing funds to buy shares in the offering, according to sources familiar with the matter.
According to Reuters, The Economic Times, Bloomberg News, and AFP, Beijing views Shein as politically sensitive and has been wary of the company causing further embarrassment after a sex doll scandal in France and reports of poor labour practices at its supplier factories in China. The company's business model — buying clothes in China and sending them direct to shoppers' doorsteps — has been criticised for selling Chinese goods at rock-bottom prices and undercutting domestic retailers and manufacturers. Shein has also faced significant regulatory challenges, including being fined more than €200 million ($228.46 million) in total by French regulators over its use of consumer data and misleading discounts, with the European Commission opening a formal investigation into the platform in February over the sale of illegal products. In June, French authorities imposed two fines on Shein totalling more than 22 million euros ($25.1 million), citing problems with product traceability, environmental labelling and delivery times. Despite moving its headquarters to Singapore in 2021, the company remains subject to CSRC oversight because its products are mostly made by a network of third-party suppliers in China.
As reported by Reuters, The Economic Times, Bloomberg News, and AFP, Shein's Hong Kong listing would position it as twice as big as fast-fashion retailer H&M, which is valued at about $24 billion and has lost market share to Shein, but much smaller than its primary rival, Temu's parent company PDD Holdings, which has a $117-billion market capitalisation. The company, which sells $5 dresses and $10 jeans in about 150 countries, initially applied for a US IPO in November 2023 but encountered increasing opposition from legislators and authorities. Shein then turned to London, where Britain's Financial Conduct Authority approved a draft prospectus but the CSRC withheld its approval, effectively blocking the listing. Shein's backers include Brookfield, Claure Group, D1 Capital, General Atlantic, HongShan Capital - formerly Sequoia Capital China, Reliance, SoftBank, Abu Dhabi sovereign wealth fund Mubadala Investment, and Saudi Arabia's sovereign wealth fund PIF. A Shein listing would be a boost for Hong Kong, which has re-emerged this year as one of the world's busiest listing venues, with the CSRC approving more than 180 other IPOs over the past 12 months.
According to AFP, Beijing's approval signifies that "China is still supporting Hong Kong as a major offshore capital raising platform", as noted by Kelvin Lam, a China-focused economist at Pantheon Macroeconomics. The US regulatory ban on Shein's listing bid in New York, which cited supply chain issues, reflected the geopolitical risks involved in listing abroad, with Lam adding that the company also "has been undergoing a lot of problems with listing" in the UK. With the approval, China "removes a long-time and major political uncertainty for Shein," Han Lin, China director for consultancy firm The Asia Group, told AFP. "Beijing is signaling selective reopening, not deregulation -- rewarding companies that strengthen China's economy while remaining aligned with national security and regulatory priorities," he added. Shein's platform exports exceeded 100 billion yuan ($14.5 billion) in 2025, demonstrating the company's continued growth trajectory. The online platform has been scrutinised over its environmental footprint and allegations of human rights violations for years, but its executive chairman told AFP last year that the company has "zero tolerance" on forced labour.
