Shein to Launch Hong Kong IPO Orders Next Week at US$35 Billion Valuation
SCMP · 1 SOURCESabout 1 hour ago2 MIN
Summary
Shein Global Holdings, the fast-fashion retailer headquartered in Singapore but founded in China, is preparing to launch investor orders for its Hong Kong initial public offering as soon as next week, targeting a valuation of US$35 billion, according to people familiar with the matter . The company, which previously sought listings in New York or London before facing regulatory obstacles, aims to raise as much as US$2.8 billion and complete the offering by the end of the month . The valuation target represents a steep decline from its peak of US$100 billion in 2022 and earlier private targets of US$40 billion to US$50 billion .
Key Points
- Shein plans to take investor orders for Hong Kong IPO as early as next week, targeting US$35 billion valuation
- Company aims to raise up to US$2.8 billion with process completion targeted by end of the month
- Valuation won't fall below US$30 billion, source says, down sharply from US$100 billion peak in 2022
- Previous listing attempts in New York and London were derailed by US and European regulatory scrutiny
- Shein generated over US$40 billion in revenue and nearly US$2 billion in net profit last year
Why It Matters
The IPO marks Shein's strategic pivot to Hong Kong after Western regulators raised concerns about its supply chain practices and tax structures, potentially offering investors a chance to tap into the fast-fashion market while navigating new EU and US import fees that could affect profitability .
The IPO marks Shein's strategic pivot to Hong Kong after Western regulators raised concerns about its supply chain practices and tax structures, potentially offering investors a chance to tap into the fast-fashion market while navigating new EU and US import fees that could affect profitability .