Shein Global Holdings Ltd. has cleared its listing hearing with the Hong Kong Stock Exchange (HKEX), advancing its plans for an initial public offering that could rank among the largest on the exchange this year. The company, which also secured approval from the China Securities Regulatory Commission (CSRC) last month, may launch the IPO as early as this week by issuing up to 341.6 million shares. This development signals strong institutional confidence in the online fashion retailer’s growth trajectory and operational scale.

The post-hearing information pack reveals that Shein is the world’s largest online fashion destination, serving 273 million active customers last year. Revenue grew at an average annual rate of 14.2% from 2023 to 2025, reaching $41.8 billion in 2025, with net profit totaling $2.06 billion. Apparel accounted for 63.8% of total revenue, while the company expanded into footwear, accessories, beauty, home, and lifestyle products. Founded in China in 2012 by Xu Yangtian, Shein scaled from 10 million annual active customers in 2018 to its current global footprint.

Shein’s business model relies on its proprietary large-scale automated test and reorder (LATR) system, which tests products in small batches, gathers customer feedback quickly, and restocks popular items rapidly. As of March this year, the company offered over 2 million apparel styles, adding approximately 4,700 new styles daily. This end-to-end intelligent supply chain enables Shein to respond to demand in days rather than weeks, balancing product variety, speed, and inventory efficiency across approximately 160 markets, with a heavy focus on Europe, the U.S., Australia, and the Middle East.

The company collaborates with over 7,500 contract manufacturers and partners with brands and designers through its Xcelerator Programme, combining their strengths with Shein’s operational capabilities. Leading global investment banks Goldman Sachs, Morgan Stanley, and JPMorgan are underwriting the deal, reflecting significant institutional interest. Previous backers include HSG (formerly Sequoia China), IDG, Boyu, General Atlantic, and Tiger Global.

What the Numbers Show

Shein’s financial performance highlights a high-margin business model supported by rapid inventory turnover. With net profit of $2.06 billion against revenue of $41.8 billion, the company demonstrates strong profitability relative to its scale. The concentration of 63.8% of revenue in apparel underscores the core strength of its fashion offerings, while expansion into adjacent categories like beauty and home goods suggests diversification efforts. The LATR model’s ability to add 4,700 new styles daily while maintaining profitability indicates efficient capital allocation and demand-driven production, reducing inventory risk compared to traditional retail models.