Shein files for Hong Kong IPO amid London delays - PitchBook

Shein has confidentially filed for an IPO in Hong Kong as the fast-fashion platform seeks to revive a stalled London listing process and increase regulatory leverage.

The Hong Kong exchange filing, first reported by the Financial Times, could serve dual purposes: as an alternative listing route should the London attempt ultimately fail, and as a way to apply pressure on UK regulators to approve the delayed flotation.

Navina Rajan, senior analyst for EMEA private capital at PitchBook, commented: “Shein’s dual-track IPO approach signals an aggressive effort to break a regulatory stalemate and preserve strategic flexibility. By engaging both HKEX and UK regulators, Shein aims to maximize its chances of listing on a global exchange that offers the best valuation and investor base. However, the political sensitivities around [sourcing from the region of] Xinjiang and declining profitability present both reputational and valuation risks.”

Shein’s tactics may not be enough to sway decision-makers. Rajan added, “We believe any tactics to pressure regulators are unlikely to move the needle given the political backdrop and company-specific issues regarding ethics and unit economics,” noting a pattern of China-linked companies—such as Alibaba, DiDi Global, and China Mobile—pursuing dual-track or redirected IPO strategies in response to mounting geopolitical and compliance pressures.

“Even if a listing does occur, the future of it is not guaranteed,” she said.

Shein initially filed for a London IPO over a year ago but has yet to receive regulatory approval. In February, the company scrapped plans to open large-scale warehouse facilities in the UK amid mounting criticism over its human rights record. The decision came as advocacy groups pushed to ban Shein advertisements on London’s public transport network.

Adding to Shein’s challenges are new trade restrictions in the US and EU that threaten its low-cost cross-border shipping model. The US recently eliminated a loophole allowing duty-free imports on low-value items and in May, the EU followed suit by introducing a €2 flat fee on cheap ecommerce parcels from China.

The Financial Times earlier this year revealed that Shein’s profits fell by 40% in 2024 as competition from Chinese rival Temu intensified. Shein had faced pressure from stakeholders to slash its IPO valuation target to roughly $30 billion—down from a previous peak of $100 billion.

Shein’s IPO was positioned as a potential win for the London Stock Exchange, which has had a dramatic decline in public listings. Just 22 companies were listed on the UK exchange in 2024, raising a total of $2.48 billion—its slowest year in decades.

The outlook for 2025 appears more hopeful, with digital banks Monzo and Revolut reportedly planning London IPOs by year-end, and Norway’s Visma also announcing plans to list in the British capital.