Hong Kong, China – Fashion retailer Shein plans to apply for a Hong Kong stock exchange listing in September or October,
after receiving approval from the China Securities Regulatory Commission, according to a source familiar with the matter.
Anticipated launch in Hong Kong
The source said that Shein is considering selling up to 8% of its shares in its initial public offering.
However, the final percentage is likely to be lower.
The source added that the IPO could raise several billion dollars.
This comes amid estimates that value the company at between $40 billion and $50 billion.
The valuation has declined from 2022 levels
The source indicated that Shein’s valuation reached approximately $100 billion during a funding round in 2022.
However, the projected valuation for the current offering reflects a significant decrease compared to that level.
The source explained that the company plans to compensate investors for the lower valuation
by offering them equity allocations for the initial public offering.
Regulatory approval paves the way for listing
The move comes after China’s securities regulator approved Shein’s listing plan.
This paves the way for the IPO to be completed in the coming months.
Investors are anticipating one of the largest IPOs in the e-commerce fashion sector this year.
