According to reports, Shein, a popular fast fashion company, has submitted confidential documents to regulators in the US, indicating their plan to become a publicly traded company in the US.
The IPO is expected to be the largest in years.
Shein is a major player in the fast fashion e-commerce industry, utilizing a network of small manufacturers in China and a strong online advertising presence.
According to various sources, JPMorgan Chase, Morgan Stanley, and Goldman Sachs have been selected to serve as underwriters for the transition. These sources include the Wall Street Journal, Financial Times, New York Times, and Reuters.
Last year, there were reports and rumors circulating that the company planned to make a public debut in the US in 2024. The recent announcement of filing confirms this news.
Shein, an e-commerce store that sells affordable clothing, was created by entrepreneur Chris Xu in China and is now based in Singapore. In just 10 years, it became worth $100 billion during a fundraising event in April 2022, making it the third most valuable start-up globally.
In May, the company’s worth decreased to slightly over $60 billion. However, if it follows through with the initial public offering, it is predicted to become the most valuable Chinese-founded company to enter the US market since Didi Global’s launch in 2021 at a $68 billion valuation.
According to a report from Bloomberg last month, the company has informed investors that it aims to achieve a valuation between $80-90 billion.
In recent times, Shein has broadened their production to include Brazil and Turkey, and they have also extended their distribution to the United States, Europe, and Canada. Despite this, the company has faced backlash for issues such as reported substandard working conditions in their factories, alleged infringement on original designs from independent artists, and criticism of the negative effects of fast fashion on the environment. Shein has refuted these accusations.
Earlier this year, a US house committee report accused Shein and its competitor Temu of “building empires” through the exploitation of legislative loopholes to avoid paying US import taxes and bypassing sanctions checks.
Shein did not provide a statement regarding the reports.
This report was contributed by Reuters.