Shein Advances with £20bn Hong Kong Listing After Abandoning London IPO
Fast-fashion retailer Shein is set to proceed with a HK$13.86 billion (£1.3 billion) listing in Hong Kong on September 1, following the cancellation of its earlier attempt at an initial public offering (IPO) in London last year. The company plans to price shares between HK47.60 and HK49.50 per share, valuing it at around £20bn—well below the £50bn valuation target from a year ago and significantly lower than its peak four years earlier. Shein has faced regulatory hurdles in London due to delays in approval and supply chain transparency concerns, including allegations of human rights abuses related to Xinjiang cotton. The company secured Chinese regulatory clearance for its Hong Kong listing only recently after previous rejections by Beijing authorities. It also contends with slowing growth, rising costs, and evolving market conditions that have dampened investor confidence. The IPO comes amid broader scrutiny over Shein's business model in the EU and US, as well as criticism from UK small retailers who claim it benefits unfairly from import duty exemptions for goods under £135. The UK government has announced plans to phase out this exemption.
Topics: Hong Kong Stock Exchange IPO regulatory approval Shein