Shein files confidential draft for Hong Kong IPO

Photo : Reuters

Shein, a popular fashion company from China, is preparing to sell its shares to the public in Hong Kong. But instead of announcing it openly, the company has quietly filed the required documents. This private method is not common in Hong Kong but is used sometimes in places like the United States.

This would be Shein's third attempt to go public. The company earlier tried to list its shares in the United States and later in London, but both efforts failed due to different rules and approval problems, especially from Chinese authorities.

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In this Hong Kong plan, Shein will keep its financial and business details private in the beginning. These details will only be shown when the stock listing reaches the final stage. This way, Shein avoids early public attention and reduces the chance of regulatory delays.

Shein is expected to submit its documents this week. The company is also waiting for final approval from market authorities in both Hong Kong and China.

This move comes as Shein is dealing with a few challenges. One major issue is new import duties from the United States on products from China, which may affect Shein’s sales. There have also been some questions about how Shein manages its supply chain, though the company has denied any wrongdoing.

Shein is one of the biggest online fashion retailers in the world. In 2023, it was valued at around $66 billion. If this share sale in Hong Kong is successful, it will be one of the largest in recent years and may also help Hong Kong regain attention from big global investors.