Shein Shifts IPO Plans from London to Hong Kong, Aiming to Go Public This Year

Delay in Chinese Regulatory Approval
From the US to the UK, Now to Hong Kong

Fast fashion company Shein is reportedly pursuing an initial public offering (IPO) in Hong Kong instead of the London Stock Exchange, due to delays in approval from Chinese regulatory authorities, Bloomberg News reported on May 28 (local time).

Bloomberg, citing sources familiar with the matter, stated that Shein is aiming to submit a draft prospectus to the Hong Kong Stock Exchange within the next few weeks.

Additionally, Shein, which had previously pursued an IPO in the United Kingdom, changed its plans to list on the Hong Kong Stock Exchange within this year after experiencing delays in obtaining approval from Chinese regulators.

Shein initially sought to go public in the United States, but shifted its focus to London to avoid investigations by regulatory authorities into its supply chain and labor practices. Now, the company is turning its attention to Hong Kong.

Bloomberg noted that if Shein were to list in London, it could inject new energy into the sluggish London IPO market. However, the company is expected to face challenges due to supply chain issues and tariffs imposed by the United States.

Shein has become one of the world's most promising startups based on its low-cost, mass production model. Last year, Shein reported annual sales of $38 billion (approximately 53 trillion won), making it the world's largest SPA (specialty retailer of private label apparel) brand with its own fashion platform.