Shein Edges Closer to Hong Kong Stock Market Debut
Hong Kong, July 17 (Reuters) – Shein, the fast-fashion retailer, has secured approval from the Hong Kong stock exchange listing committee for its initial public offering (IPO), according to three sources familiar with the matter. This significant development brings the company one step closer to its highly anticipated stock market debut in the Asian financial hub.
Source: s.yimg.com
The IPO is expected to be one of the most closely watched listings in Hong Kong in recent years, serving as a major test of investor appetite for large consumer deals. Shein’s earlier attempts to list in New York and London were met with regulatory scrutiny, ultimately stalling the process.
Shein aims to publish its first listing filing available to the public in the week of July 27, as revealed by two of the sources. The retailer could launch the IPO as soon as late August, pending market conditions, one of the sources and a fourth insider stated. However, the timetable and offering details are not yet finalized and may be subject to change.
The company has begun arranging marketing meetings with investors, as disclosed by three of the sources. These meetings are a crucial step in the IPO process, allowing Shein to gauge investor interest and gauge the market’s response to its offering.
The Hong Kong stock exchange declined to comment on the matter, while a spokesperson for Shein did not immediately respond to requests for comment from Reuters regarding the hearing process outcome.
The Hong Kong exchange’s listing committee hearing on the Shein IPO was scheduled for Thursday, as reported by Reuters earlier this week. During the hearing, the company was required to answer questions about its operations and finances. Once a company has secured the nod from the exchange listing committee after the hearing, it can proceed with investor roadshows and book-building for the IPO, according to local market rules.
Shein is seeking a valuation of $40 billion to $50 billion in its Hong Kong listing, which is significantly lower than the $100 billion valuation in a funding round in 2022, as one of the sources revealed. The retailer earned global revenue of more than $40 billion last year and made close to $2 billion in net profit, according to sources who spoke to Reuters earlier this week.
New fees on e-commerce parcels in Europe have weighed on sales growth and profits at the retailer. Despite these challenges, Shein remains a major player in the fast-fashion industry, with a significant global presence and a strong brand reputation.
