Shein Seeks U.S. IPO to Expand Global Fast-Fashion Empire

Shein has confidentially filed to go public in the U.S., marking a significant move for the Chinese fashion giant as it seeks to expand its global footprint through a long-anticipated IPO, according to sources at CNBC.

Valued at $66 billion in its last assessment, the retailer is looking to enter the public market as early as 2024, as reported by individuals familiar with the matter.

The company’s current valuation remains undisclosed, but it has been a point of contention in discussions between Shein and its advisors, according to sources.

While Shein has gained widespread popularity for its trendy designs, vast product range, and competitive prices, it has also encountered various challenges, including allegations of labor rights violations, environmental harm, and plagiarism of artists’ work.

The company is currently under scrutiny from the House Select Committee on the Chinese Communist Party and has faced questions about its ties to Beijing. Amid these concerns, several lawmakers, including 16 Republican attorneys general, have urged the U.S. Securities and Exchange Commission to ensure that Shein is not utilizing forced labor in its supply chain prior to its U.S. trading debut.

In an interview in October, Marcelo Claure, Shein’s group vice chair and former SoftBank CEO, stated that the company is working with authorities and is committed to addressing their concerns. He refuted the existence of forced labor in Shein’s factories based on his visits, although the company has admitted to instances of forced labor and is taking corrective actions.

Additionally, Shein has engaged Goldman Sachs, JPMorgan, and Morgan Stanley as the primary underwriters for the offering, sources added.

Shein and the underwriters declined to provide comments on the matter, and Chinese media outlets previously reported the IPO filing by the company.

This is developing news. Stay tuned for updates.