Chinese online fashion platform Shein is entering a review by the Hong Kong Exchanges and Clearing Listing Committee, a key step for a Hong Kong listing. After winning approval from Chinese authorities and locking in the Hong Kong exchange's review schedule, there is growing view that the initial public offering (IPO), which had been thwarted in New York and London, is entering its final phase.
On the 13th (local time), Reuters reported, citing multiple sources, that Shein is set to undergo an IPO review by the Hong Kong Exchanges and Clearing Listing Committee on the 16th. The committee is expected to ask questions about Shein's business structure, financial condition, governance, and regulatory risks during the review.
If it passes this Listing Committee review, Shein can begin the offering process, including a roadshow for institutional investors and book-building. Shein is considering listing on the Hong Kong stock exchange as early as September or October. The target valuation is known to be $40 billion to $50 billion (about 59 trillion won to 74 trillion won).
This review follows approval on the 10th (local time) by the China Securities Regulatory Commission (CSRC) of Shein's Hong Kong IPO plan. Shein submitted a confidential listing application to the Hong Kong exchange in July last year, but it took about a year to obtain approval from Chinese authorities. Although it transferred its headquarters to Singapore, a significant portion of its production and supply chain remains in China, requiring Chinese approval for an overseas listing.
In particular, this Hong Kong listing marks Shein's third IPO attempt. Shein first pursued a New York listing, but it was derailed by pushback from politicians and regulators over allegations of forced labor and supply chain transparency issues. It then shifted to a London listing, but dropped the plan after failing to secure approval from Chinese authorities. If it passes the Hong Kong exchange review and completes the offering process, Shein will debut on the stock market for the first time after roughly four years of attempts.
As Shein's IPO process enters the final stretch, the company is also reshaping executive roles. According to Reuters, Executive Chairman Donald Tang is set to step down from the chairmanship and move to the role of senior adviser. While the exact timing has not been set, the move is seen as personnel action tied to the IPO work effectively entering its concluding stage.
Tang, a Chinese American and former investment banker, joined Shein in 2023 and has led the company's external affairs in place of founder and Chief Executive Officer (CEO) Xu Yangtian. He has served as Shein's "Western face," meeting politicians and regulators in various countries and attending international conferences. Reuters said that after Tang steps down, CEO Xu Yangtian will assume the chairmanship and personally lead external listing activities, including investor roadshows.