Fast-fashion powerhouse Shein has cleared a major hurdle on its path to going public, after receiving approval from the Hong Kong stock exchange’s listing committee for an initial public offering (IPO), according to three people familiar with the situation who spoke on Friday.
The development brings Shein significantly closer to a stock market debut in the Asian financial hub — one that has been closely anticipated by investors and industry watchers alike. Previous attempts by the company to list on exchanges in New York and London were derailed by regulatory scrutiny.
The sources who shared this information asked not to be identified, saying they were not authorized to speak publicly on the matter. Representatives for both Shein and the Hong Kong stock exchange did not respond to Reuters’ requests for comment regarding the outcome of the hearing process.
Reuters had reported earlier this week that the listing committee hearing was set for Thursday, during which Shein was expected to field questions from the exchange about its business operations and financial standing.
Under Hong Kong market rules, once a company receives the listing committee’s approval following its hearing, it is then permitted to move forward with investor roadshows and the process of building its order book ahead of the IPO.
Shein is aiming for a valuation in the range of $40 billion to $50 billion for its Hong Kong listing. That figure represents a significant decline from the $100 billion valuation the company reportedly received during a funding round in 2022, when it first began pursuing a listing in New York.
