Shein Group is moving ahead with preparatory work for a possible Hong Kong initial public offering, people familiar with the matter said, potentially capping a years-long effort by the fast-fashion giant to go public.
Shein and its advisers may seek to launch the IPO as soon as in the coming months if the China Securities Regulatory Commission gives its approval, the people said, asking not to be identified discussing private information. Recent discussions with the regulator have yielded more positive signals, some of the people said.
The company is considering raising a few billion dollars in the IPO, the people said, adding that the final amount will depend on the valuation. While work is underway, there is no firm timeline, and the listing could still be delayed further, the people said.
Shein had been under pressure from shareholders to cut its valuation to about $30 billion, having in the past been valued at more than three times that amount, people familiar with the matter said last year.
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“As a matter of policy, we do not comment on rumours or speculation,” said a representative for Shein. The CSRC didn’t respond to a request seeking comment.
Shein unsuccessfully tried to list in the US and London before switching to Hong Kong last year, all the while seeing its valuation plummet. Hong Kong’s stock market has also fallen this year, by about 6%, but its IPO market is fizzing, with almost $35 billion raised in first-time share sales already.
Shein’s initial plan to go public in the US was derailed two years ago amid scrutiny of its supply-chain and labor practices, and London was abandoned as Chinese regulators withheld their approval.
The retailer moved its headquarters to Singapore in 2021, but it remains subject to CSRC oversight because the regulator requires all firms with substantial links to China, even those that aren’t incorporated in the country, to clear its review prior to listing anywhere in the world.
Having spent years playing down its Chinese roots and marketing itself as a global company, Shein shifted tack after applying for the Hong Kong IPO last year. Founder Xu Yangtian has pledged to pour more resources in the southern Chinese trade hub of Guangdong province, home to a sprawling network of manufacturers that churn out ultra-low-cost clothing.
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| Year | Valuation (approx) | State of play |
|---|---|---|
| 2022 | $100 billion | Peak valuation after April funding round, topping H&M and Zara market caps combined. |
| 2023 | $66 billion | Another funding round, but valuation coming under pressure on slower sales, ESG concerns. |
| 2024 | $45 billion | Attempted private market deals by investors reflect dwindling appetite and valuation. |
| 2025 | $30 billion | Shareholders call for Shein to cut its valuation |
Shein’s valuation has been dwindling from the $100 billion it fetched four years ago. The company has faced competition from PDD Holdings Inc.-owned Temu in key markets such as the US and Europe, while tariff-induced price increases have also dented consumer demand and regulators have scrutinised its operations.
Still, Shein was expecting a bumper $2 billion in net income last year, after higher profit margins through price hikes and cost-cutting helped overcome a drop in online traffic caused by President Donald Trump’s punitive tariffs.
Shein’s backers include IDG Capital, Mubadala Investment, Tiger Global Management and HSG.
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