Key facts
- Shein has received approval from China's securities regulator for its Hong Kong IPO.
- The approval follows failed attempts to list in New York and London.
- The company is considering a listing in September or October.
- Shein's founder, Sky Xu, is known for his privacy, which has raised concerns.
- Shein moved its headquarters to Singapore in 2022.
Shein has secured approval from China's securities regulator for its initial public offering in Hong Kong, marking a significant step after previous listing attempts in New York and London were unsuccessful. The fast-fashion giant is reportedly considering launching its IPO as early as September or October, with a potential valuation of up to $50 billion.
The approval from the China Securities Regulatory Commission (CSRC) comes after a year-long wait, with Beijing viewing Shein as politically sensitive. The company's opaque leadership, particularly its secretive founder and CEO Sky Xu, has been a point of concern for Western regulators and campaigners. Xu, who founded the company in China in 2012, has largely avoided public appearances and interviews, delegating leadership responsibilities to others like Donald Tang.
Shein moved its headquarters to Singapore in 2022, though its extensive supply chain remains concentrated in China. This move may have been strategic to distance the company from potential Chinese government crackdowns, similar to what befell Alibaba's Jack Ma. Despite the challenges, a successful Hong Kong listing would be a boost for the city's equity capital markets.