Shein has Beijing’s approval — and will compensate investors for the fall in its valuation
A listing is likely in September or October. The company is prepared to hand its 2022 investors money to buy shares, smoothing the fall from $100 billion.
Shein will most likely target an initial public offering in Hong Kong in September or October, after winning approval from China’s securities regulator on Friday.
The company has indicated it could sell up to 8% of its shares, though the final stake will probably be smaller. At a possible valuation of $40–50 billion, the amount raised would run to a few billion dollars — low single digits.
The most interesting part is the smoothing mechanism. Shein was valued at $100 billion in a 2022 funding round. The company is now compensating those investors for the fall in valuation by giving them money to buy shares in the offering.