BRIEF: Shein makes confidential filing for Hong Kong IPO

Fast fashion sensation Shein was planning to confidentially file a draft prospectus for a listing on the Hong Kong Stock Exchange by this week, after its earlier bids to list in the U.S. and Britain both failed, Reuters reported, citing several sources familiar with the matter.

The company may have filed the preliminary prospectus last week, one source said, while another said it was expected to make the filing by Monday, according to the report. The confidential filing marks a departure from the usual practice of making such filings publicly, the report added.

Under the confidential process, Shein wouldn’t need to publicly disclose any of its financial information until it passed its listing hearing with the Hong Kong Stock Exchange. Trading debuts typically occur within two to three weeks after a company passes its listing hearing.

Shein was last valued at $66 billion during a fundraising round in 2023, down by a third from a year earlier. The company has faced recent pressure due to competition from Chinese and foreign rivals, and also from the U.S. closure of a loophole that previously allowed the company to ship products directly from China to the U.S. without paying any import duties.

Shein was founded in China and still sources many of its clothes from the country, but has moved its headquarters to Singapore. Still, the company’s strong ties to China require it to receive approval from the Chinese securities regulator before it can make an overseas listing.

By Doug Young

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