Shein reportedly targets Sept. 1 for Hong Kong IPO debut

Fast-fashion giant Shein is reportedly aiming for a September 1 debut on the Hong Kong stock exchange, according to the South China Morning Post. This date represents a slight adjustment from the previously anticipated August 28 listing.

The company has navigated years of shifting plans and controversies, including previous attempts to sell shares in New York and London that did not materialize. The Hong Kong newspaper, citing anonymous sources, also indicated that Shein would open its share reservation phase on August 24.

However, Shein has not officially confirmed these timelines. The company has maintained confidentiality regarding its IPO process, redacting calendars in its investor filings to the Hong Kong stock exchange. Key details such as the deal size, valuation, and specific timelines are reportedly still under negotiation, leaving room for potential changes.

Market observers expect Shein to list with a valuation under $30 billion. This figure marks a substantial decrease from the approximately $98.2 billion valuation estimated in 2022, following its penultimate funding round. Recent financial press reports suggest Shein could raise between $2 billion and $3 billion by selling around 342 million shares.

Founded in Nanjing, China, in 2012, Shein's popularity surged during the COVID-19 pandemic due to the boom in online sales. It relocated its headquarters to Singapore in 2022, partly to distance itself from its Chinese origins and pursue overseas listings. After facing obstacles in New York and London, particularly due to Chinese regulatory intervention, Hong Kong emerged as a compromise. Shein, which operates in about 160 countries and regions, has drawn criticism for its environmental and labor impact, alleged sale of illegal products, and deceptive business practices. Furthermore, the end of tariff exemptions for low-value shipments in the U.S. and the European Union has impacted its business model, which relies heavily on cheap imports.