Shein Once Chased a $100 Billion IPO. Now It’s Preparing to Go Public at Half That Value

Shein has cleared a major hurdle in its years-long effort to secure an IPO after securing approval from the Hong Kong Stock Exchange's listing committee, according to different reports.

The decision moves the fast fashion giant closer to launching one of the most anticipated initial public offerings in Asia following unsuccessful attempts to list in New York and London amid mounting regulatory scrutiny.

According to Reuters, the Singapore-headquartered retailer plans to publish its first public listing document during the week of July 27, with the IPO potentially launching as early as late August if market conditions remain favorable. The timeline and final terms, however, could still change before the offering reaches investors.

The listing committee's approval is a significant procedural milestone. Under Hong Kong exchange rules, companies that pass the committee hearing can move ahead with investor roadshows and begin the book-building process that determines final demand and pricing before shares begin trading. Reuters reported that Shein has already started arranging marketing meetings with institutional investors.

If completed, the IPO would represent one of Hong Kong's biggest consumer listings in recent years and serve as an important gauge of investor confidence in large retail offerings at a time when the city's capital markets are showing signs of recovery after several years of subdued activity.

Shein is reportedly targeting a valuation between $40 billion and $50 billion, according to Reuters sources. While still placing the company among the world's most valuable fashion retailers, the figure represents a steep decline from the approximately $100 billion valuation it achieved during a private fundraising round in 2022, when it first pursued a U.S. public listing.

The valuation adjustment reflects a more cautious investment environment as well as increasing regulatory and operational challenges facing global e-commerce companies. Founded in China before relocating its headquarters to Singapore, Shein has transformed into one of the world's largest online fashion retailers by relying on an ultra-fast supply chain capable of bringing new designs to market within days.

The company sells directly to consumers in more than 150 countries and has become particularly popular among younger shoppers through low prices, frequent product launches, and aggressive social media marketing.

Despite its commercial success, Shein's path to the public markets has been anything but straightforward. The company initially sought to list in New York, but that effort encountered growing political and regulatory opposition in the United States over issues including supply chain transparency, labor practices, and the company's ties to China.

It later shifted its focus to London, but that listing also failed to materialize after regulatory complications and questions involving approvals from Chinese authorities. Hong Kong has since emerged as Shein's preferred destination, offering access to international investors while remaining geographically and commercially closer to its manufacturing network.

The company continues to generate substantial financial results despite new challenges. Reuters reported earlier this week that Shein generated more than $40 billion in global revenue last year while earning nearly $2 billion in net profit, according to people familiar with the company's finances.

However, recent European fees imposed on low-value e-commerce parcels have begun weighing on both sales growth and profitability, creating additional pressure as the company prepares to enter public markets.

Neither Shein nor Hong Kong Exchanges and Clearing immediately commented on the reported listing committee approval. Reuters said its sources requested anonymity because they were not authorized to discuss the confidential IPO process.