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FinanceShein secures nod from Hong Kong listing committee for IPO
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Fast-fashion retailer Shein has received approval from the Hong Kong stock exchange listing committee for its initial public offering (IPO), according to three sources with knowledge of the matter. The IPO is expected to be one of Hong Kong's most closely watched listings in years, following Shein's failed attempts to list in New York and London due to regulatory scrutiny. Shein aims to publish its first public listing filing in the week of July 27 and could launch the IPO as soon as late August, though the timetable remains subject to market conditions. The company is seeking a valuation of $40 billion to $50 billion, significantly lower than its $100 billion valuation in 2022. Shein earned over $40 billion in global revenue last year with nearly $2 billion in net profit, though new European e-commerce parcel fees are weighing on growth.
Source report
Source: Reuters
HONG KONG, July 17 (Reuters) — Shein has received approval from the Hong Kong stock exchange listing committee for its initial public offering (IPO), according to three people with knowledge of the matter. The decision brings the fast-fashion retailer closer to its long-awaited stock market debut in the Asian financial hub.
Key Developments
- The IPO is expected to be one of Hong Kong's most closely watched listings in years and a major test of investor appetite for large consumer deals.
- Shein's earlier attempts to list in New York and London stalled amid regulatory scrutiny.
- The company aims to publish its first public listing filing during the week of July 27, two sources said.
- The IPO could launch as early as late August, though the timetable and offering details remain subject to change based on market conditions.
Investor Engagement
Shein has begun arranging marketing meetings with investors, three sources confirmed. The sources declined to be named as they were not authorized to speak to the media.
Official Responses
- The Hong Kong stock exchange declined to comment.
- A Shein spokesperson did not immediately respond to requests for comment on the hearing process outcome.
Listing Process
The listing committee hearing was scheduled for Thursday, as reported by Reuters on Monday. During the hearing, Shein was required to answer questions about its operations and finances. Under local market rules, once a company secures approval from the exchange listing committee, it can proceed with investor roadshows and book-building for the IPO.
Valuation and Financial Context
- Shein is seeking a valuation of $40 billion to $50 billion in its Hong Kong listing.
- This is significantly lower than the $100 billion valuation from a 2022 funding round, when the company first pursued a New York listing.
- New fees on e-commerce parcels in Europe are weighing on sales growth and profits.
- Shein earned global revenue of more than $40 billion last year and recorded close to $2 billion in net profit, sources told Reuters earlier this week.
Reporting by Kane Wu and Selena Li in Hong Kong; Yantoultra Ngui in Singapore and Helen Reid in London; Editing by Sumeet Chatterjee, Muralikumar Anantharaman, and Kevin Buckland
Source
Yahoo FinanceWestern
Part of this Story
Shein Wins Chinese Approval for Hong Kong IPO After Failed US, UK Attempts