Shein executive chairman to reportedly exit ahead of IPO

Donald Tang, the executive chairman of Shein, is reportedly due to step down as the Chinese e-tail giant nears the end of its IPO process. According to Reuters, which cited sources with direct knowledge of the matter, Shein’s founder and CEO Sky Xu will take up the position of chairman.

The media outlet said Tang would continue to work alongside the management team as a senior advisor for the foreseeable future. He will not be included among information on the company’s leadership for its upcoming IPO filing, which is expected to be made public in the coming weeks. Shein declined Reuters’ request for comment.

Tang joined Shein in November 2022 and has been tasked with securing an international IPO, among other goals. He initially sought a New York listing, where he faced challenges over criticism of Shein’s use of the ‘de minimis’ customs duty waiver and allegations of unethical practices in the company’s supply chain.

Similar issues were raised when Shein then approached London, where the company also failed to establish an IPO after the China Securities Regulatory Commission declined to approve the listing despite the UK’s green light. Shein has since shifted to Hong Kong, where the e-tailer secured backing earlier this month.

The company will meet with members of the Hong Kong Stock Exchange’s listing committee this week in order to gain clearance. Reuters reported that, if approved, Shein could aim to list in September or October, with a valuation said to potentially sit between 40 and 50 billion dollars.