Fast-fashion cross-border e-commerce company Shein has received approval from the Hong Kong Stock Exchange's listing committee for an initial public offering (IPO), three people familiar with the matter said on Friday, bringing it one step closer to a highly anticipated listing in the Asian financial hub, Reuters reported.
According to previous reports, the company plans to raise approximately US$2 billion to US$3 billion, with a target valuation of US$40 billion to US$50 billion.
Founded in 2008, Xiyin is a global cross-border e-commerce platform with fast fashion as its core. It mainly sells women's clothing and later expanded to men's clothing, children's clothing, home furnishings and accessories. The company uses a flexible supply chain and a "small order and quick response" model to quickly respond to market trends and provide cost-effective products. Its business has covered more than 150 countries and regions around the world.
This IPO will become one of the most watched listing transactions in Hong Kong in many years. It will also become an important litmus test for investors' demand for IPOs of large consumer companies.
According to a Reuters report on Monday, the Hong Kong Exchange Listing Committee held a hearing on Xiyin’s listing on Thursday. Xiyin needs to answer questions from the Listing Committee regarding its operations and financial condition. According to Hong Kong's local market rules, a company can proceed with the IPO's investor roadshow and bookkeeping work after obtaining approval from the Listing Committee after a hearing.
The listing will realize the realization of capital from multiple parties. Early-stage institutions such as Sequoia and General Atlantic Investments can trade and exit the shares held for many years to obtain investment returns. Founder Xu Yangtian holds about 37% of the company's shares. The "New Fortune" 2026 Rich List shows that his current book wealth is 77.7 billion yuan. If the listing is completed at a valuation of US$45 billion, the media estimates that his net worth will rise to about 132.7 billion yuan. The scale of his wealth will be greatly expanded, and he is expected to become the richest man in Guangzhou.
Other media reports mentioned that after the listing, the liquidity of the equity has improved, and Xu Yangtian can realize his book wealth through reduction of holdings, equity pledge, etc. At the same time, the company's funds raised will be used for supply chain expansion and overseas market expansion to further consolidate the value of the company's assets and continue to increase the long-term rights and interests of the founding shareholders.
As of press time, spokespersons for Xiyin and the Hong Kong Exchange have not yet commented.