Shein has secured approval from the Hong Kong stock exchange's listing committee for its planned IPO.
The company is expected to publish its listing document next week and could launch the offering as early as late August.
The retailer is targeting a valuation of $40-$50 billion, below the $100 billion level it achieved in 2022.
Shein Wins Hong Kong IPO Nod; Eyes Listing as Early as August
The fast-fashion retailer is targeting a valuation of $40-$50 billion, with the public filing expected in the week beginning July 27
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Fast-fashion retailer Shein has secured approval from the Hong Kong stock exchange's listing committee for its planned initial public offering (IPO), moving a step closer to its long-awaited stock market debut in the Asian financial hub, according to a Reuters report. Shein is expected to publish its first public listing document in the week beginning July 27.
The retailer could launch the IPO as early as late August, although the timing and final details of the offering have not been finalised and could change depending on market conditions.
The proposed listing is expected to be one of Hong Kong's most closely watched IPOs in recent years after the company's earlier attempts to go public in New York and London were delayed by regulatory scrutiny.
IPO Process Moves Ahead
Reuters reported earlier this week that Shein's listing committee hearing had been scheduled for Thursday, during which the company was required to answer questions related to its business operations and financial position.
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Under Hong Kong's listing rules, companies that receive approval from the exchange's listing committee can move ahead with investor roadshows and the book-building process before launching an IPO.
According to the news agency, Shein has already started arranging marketing meetings with investors as it prepares for the next phase of the offering.
Valuation Below Earlier Peak
Shein is seeking a valuation of $40 billion to $50 billion for its Hong Kong listing. That is significantly below the $100 billion valuation the company achieved during a funding round in 2022, when it first began pursuing a listing in New York, according to one of the people cited by the agency.
The lower valuation comes as the retailer faces a more challenging operating environment. The agency also reported earlier this week that new fees on e-commerce parcels in Europe have weighed on Shein's sales growth and profitability.
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Despite those challenges, the company generated more than $40 billion in global revenue last year and reported close to $2 billion in net profit.