Shein Advances Hong Kong IPO Preparations, Aims to Raise Billions of Dollars
Claire Weston
Fast-fashion giant Shein is pushing ahead with a Hong Kong IPO that could launch within months and raise billions of dollars, Bloomberg reports — but its valuation has shrunk from a $100 billion peak to roughly $30 billion, and China's securities regulator holds the final key.
What exactly is happening with this IPO?
Bloomberg, citing people familiar with the matter, reports Shein is advancing Hong Kong IPO preparations and seeing more positive signals from regulators.
If China's securities regulator approves, the offering could launch within months, targeting a raise of several billion dollars.
But there is no fixed timeline — the process could still be delayed further.
Why has the valuation dropped by 70%?
Shein's valuation peaked at roughly $100 billion during a 2022 funding round and has declined steadily since.
This means → shareholders last year pressured the company to accept a valuation of about $30 billion — roughly one-third of the peak.
In plain terms = two years ago investors valued it at $100 billion; now it would be lucky to fetch $30 billion. Private-market trading attempts have reflected the same cooling interest.
Why not list in the US or the UK?
Shein previously tried to list in both the US and the UK, and failed both times.
The US plan stalled over scrutiny of supply-chain and labor practices; the UK attempt was abandoned after Chinese regulators withheld approval.
This reflects a core tension: Shein moved its headquarters to Singapore, but China's securities regulator requires all companies with substantial China ties — regardless of where they are incorporated — to clear its review before listing anywhere in the world.
Can Shein still play the "not a Chinese company" card?
Shein long downplayed its Chinese origins, cultivating a global brand image instead.
After filing for a Hong Kong IPO, it shifted course. Founder Sky Xu pledged greater investment in Guangdong province — the backbone of its ultra-low-cost garment supply chain.
This means → choosing Hong Kong is, in effect, accepting the "Chinese company" regulatory label and trading compliance for an approval pathway.
Can Hong Kong's market absorb this IPO right now?
Hong Kong's IPO market has been active this year, with new listings raising nearly $35 billion so far.
But the Hang Seng Index has fallen roughly 6% over the same period — secondary-market sentiment is not strong.
In plain terms = the primary market is issuing new stock while the secondary market is marking down existing stock. Whether Shein can secure a reasonable valuation hinges on the interplay between regulatory approval timing and final pricing.
Content is for reference only, not financial advice.