Shein IPO: what to know and how to buy shares

What is Shein's business model?

Shein operates a data-driven "on-demand" production model with rapid market testing. The company releases small batches of 200 items per design, using real-time analytics across its digital platforms to monitor performance. Only designs that prove popular with customers move to larger-scale production.

This technology-first approach enables Shein to respond to fashion trends within days rather than months. By analysing detailed customer data and purchasing patterns, the company can adjust production volumes and introduce new styles in as little as a week - significantly faster than traditional retail cycles.

While Shein operates in the fast-fashion sector, which faces environmental and labour scrutiny, the company maintains its model reduces waste compared to traditional retail. Rather than predicting trends months in advance, Shein argues that producing based on verified customer demand leads to more efficient inventory management.

However, industry analysts have raised concerns about how Shein's upcoming public listing could impact its responsive business model. The shift toward shareholder obligations and quarterly performance targets may pressure the company to prioritize cost reduction over the rapid-response capabilities that have driven its success, according to CX Network's analysis.

When will the Shein IPO happen?

Shein is preparing to list on the London Stock Exchange (LSE), marking a significant shift from its original New York Stock Exchange plans. Industry experts suggest a potential launch in 2025.

The Singapore-based fast-fashion giant changed its listing location after facing intense US regulatory scrutiny over its supply chain practices, particularly regarding cotton sourcing and labour policies.

The UK government has committed to enforcing "the highest standards" during the listing process. The Financial Conduct Authority (FCA) is also conducting mandatory investigations into Shein's supply chain and labour practices.

What will the Shein IPO be valued at?

Shein aims for a total company valuation of US$66 billion for its London Stock Exchange listing, according to Reuters' December 2024 report.

In an unusual move, the company plans to float less than 10% of its shares – breaking from the LSE's traditional minimum requirement. This means the initial public offering itself would be valued at approximately US$6.6 billion.

Industry analysts project the individual share price will land between US$50 and US$100, with final pricing dependent on:

• Market demand
• Discussions with underwriting banks
• Institutional investor interest

The company began its pre-IPO preparations in late 2024, including management meetings with select institutional investors and early circulation of its prospectus. Market observers are watching this listing closely, as its success could influence future e-commerce and fast-fashion IPOs.

How to buy Shein IPO shares

Step 1: learn how IPOs work

The initial public offering (IPO) process begins before shares list on an exchange. Key stages include Shein's public announcement, financial auditing, and regulatory approvals. Understanding these steps helps you assess the investment opportunity.

Learn more about how the IPO process works.

Step 2: stay informed about the Shein IPO

Monitor Shein's IPO developments through our news and trade ideas. Our experts provide regular updates on:

• The expected US$66 billion valuation
• Potential listing in first half of 2025
• LSE listing requirements and regulatory developments
• Market sentiment and institutional interest

Step 3: understand how CFD trading works

With us, you can trade Shein using CFDs once it’s live on our platform. This means you can:

• Trade on margin – open positions with a small deposit
• Go long or short – profit from share prices rising or falling
• Use leverage – magnify potential profits and losses, as they're based on the full position size

Step 4: create your trading plan

Develop a clear strategy before trading, including:

• Entry and exit points
• Risk management rules
• Position sizing
• Stop-loss levels

Learn more about trade planning and risk management in the IG Academy.

Step 5: start trading Shein shares

Once Shein lists on our platform, you can start trading through your IG CFD trading account.

Trading opportunities similar to Shein

Fast-fashion stocks

Trade shares in direct competitors:

• Inditex (BME: ITX) - Zara's parent company
• H&M (STO: HM-B)
• ASOS (LON: ASC)

E-commerce platforms

Consider online retail companies that benefit from Shein's operations:

• Alibaba (NYSE: BABA)
• JD.com (NASDAQ: JD)
• Temu's parent company PDD Holdings (NASDAQ: PDD)

Key points to remember

• Shein aims to list on the London Stock Exchange in the first half of 2025, pending FCA investigations into supply chain practices.
• The company targets a total valuation of US$66 billion, with plans to float less than 10% of shares - making the IPO value approximately US$6.6 billion.
• Industry analysts project share prices between US$50 and US$100, with final pricing dependent on market demand and institutional investor interest.
• The company operates a data-driven "on-demand" model, testing designs in small 200-item batches before scaling production based on performance.
• After changing plans from a NYSE listing, Shein faces UK regulatory scrutiny over its supply chain practices, particularly regarding cotton sourcing and labour policies.
• Market observers are watching this listing closely, as its success could influence future e-commerce and fast-fashion IPOs.