Shein has quietly filed to go public in the United States as the Chinese-founded fast-fashion giant seeks to broaden its appeal internationally through a much-discussed IPO.
As early as 2024, the retailer—whose most recent valuation was $66 billion—may be prepared to begin trading on public markets, according to individuals with knowledge of the situation on Monday.
Although the company’s current valuation is unknown, those with knowledge of the situation said that Shein and the advisors it works with have disagreed sharply about it.
A confidential filing is typical because it enables businesses to interact with the U.S. Securities and Exchange Commission and make any required private filing adjustments. Shein is expected to revise its documentation and respond to a litany of inquiries from the agency during the course of the ensuing months. When the business is prepared to proceed with its IPO, the filing will be made available to the public. At that time, the correspondence with the SEC and any modifications to its documentation will also be made public.
Over the past few years, Shein has experienced a meteoric rise in popularity thanks to its cutting-edge designs, vast selection, and incredibly low prices, which have won over customers all over the world. However, Shein has encountered several difficulties along the road, including allegations that it has violated labor laws, harmed the environment, used forced labor in its supply chain, and stolen designs from independent artists.
The company has come under fire for its connections to Beijing and is currently the subject of an investigation by the recently established House Select Committee on the Chinese Communist Party. Before Shein is permitted to begin trading in the United States, a number of lawmakers, including sixteen Republican attorneys general, have urged the SEC to make sure the company isn’t using forced labor in its supply chain.
The company’s recently appointed group vice chair and former CEO of SoftBank, Marcelo Claure, told in an interview in October that Shein is working with lawmakers and making time to meet with them to go over the business. “There is no such thing as forced labor,” he declared, referring to the Shein factories he had visited. However, the business has consistently stated that it is taking action to address the issue and that forced labor has been discovered in its supply chain.
Shein remained mostly hidden as it expanded from a small, unknown Chinese retailer to a massive, international corporation with its headquarters located in Singapore. It didn’t say or do anything in public until this year, when it started to speak up in what seemed to be an effort to get ready for a
Earlier this year, Shein appointed former Bear Stearns investment banker Donald Tang as its executive chair and public face, with Chinese CEO Sky Xu continuing to lead the company. It has thrown a number of well-publicized pop-up events, sent influencers to visit its factories in China as part of a PR campaign that was met with mixed reviews, and courted the business press with extravagant parties that showcased its independent designers and other company allies.
Shein has put a lot of effort into dispelling the numerous unfavorable rumors that have come to characterize the business, and it has made its executives available for interviews in an effort to alter the perception.
It recently acquired roughly one-third of Sparc Group, a joint venture comprising mall owner Simon Property Group and brand management company Authentic Brands Group. By doing this, it gained a strong ally in the United States that may help the business gain legitimacy with American regulators.
As part of the agreement, Shein and its erstwhile competitor Forever 21 will launch a co-branded apparel line, with Shein designing, producing, and selling the items mainly online. Pop-up events have been held by Shein within Forever 21’s retail locations.
Shein still needs to put in more effort before US regulators will be willing to trust it. Beyond all of its problems, the CEO of the company is still a shadowy character who never speaks in public or does interviews. This is a significant divergence from other publicly traded American companies, which routinely provide access to their CEOs. Regarding Xu’s citizenship, the company withheld information in October.
According to the people, the company has selected Morgan Stanley, JPMorgan, and Goldman Sachs to serve as the offering’s lead underwriters.
Shein said she would not comment. Morgan Stanley, JPMorgan, and Goldman Sachs remained silent.
Shein’s filing was covered by Chinese media earlier on Monday.
