Fast-fashion retailer Shein won approval for its long-awaited Hong Kong IPO on Friday, a notice posted on the China Securities Regulatory Commission (CSRC) website showed, clearing the way for a listing after failed attempts in New York and London.
Shein, a fast-growing e-commerce giant, would be the highest-profile retailer to list in years, as many consumer brands have delayed initial public offerings due to weak investor sentiment and subdued spending by lower- to middle-income shoppers.
Founded by Chinese-born entrepreneur Sky Xu in 2012, Shein has waited a year for the green light from Beijing for its IPO, which had to be cleared by the highest levels of the ruling Communist Party, according to a source with direct knowledge of the matter.
Beijing views Shein as politically sensitive and has been cautious about endorsing a listing after controversies including a sex doll scandal in France and reports of poor labor practices at its supplier factories in China, Reuters quoted the source as saying.
Shein filed confidentially for its Hong Kong IPO and had not made the filing documents public as of Friday. With CSRC approval, the company can organize investor roadshows and prepare for its hearing with the Hong Kong stock exchange's listing committee, a requirement for all IPO candidates.
The company could possibly aim to list in September or October, the source said.
