The popular clothing brand Shein has allegedly submitted private documents to US securities regulators, revealing plans to become a publicly traded company in the US.
The IPO is expected to be the largest in years.
Shein is a top player in the fast fashion online market, utilizing a network of Chinese manufacturers who ship in small quantities and a strong online advertising presence.
According to sources who requested anonymity and were mentioned in publications such as the Wall Street Journal, Financial Times, New York Times, and Reuters, JPMorgan Chase, Morgan Stanley, and Goldman Sachs have supposedly been chosen to act as underwriters for the transition.
Last year, there were reports and rumors that the company planned to go public in the United States in 2024. The recent filing confirms this information.
Shein, an e-commerce platform that sells affordable clothing, was established by entrepreneur Chris Xu in China but is currently based in Singapore. In just ten years, it achieved a worth of $100 billion during its fundraising round in April 2022, making it the third highest-valued start-up globally.
In May of this year, the company’s worth decreased to slightly over $60 billion. However, if it proceeds with the IPO, it is predicted to surpass Didi Global’s $68 billion valuation and become the most valuable Chinese-founded company to go public in the US.
According to a report from Bloomberg last month, the company has informed investors that it is aiming for a valuation between $80 and $90 billion.
In recent times, Shein has broadened their production to include Brazil and Turkey, while also increasing their distribution to the United States, Europe, and Canada. However, the company has faced backlash for issues such as reported substandard working conditions in factories, alleged infringement of copyright on designs from independent artists, and concerns about the negative effects of fast fashion on the environment. Shein has refuted these claims.
Earlier this year, Shein and its competitor Temu were accused in a report by a US house committee of “creating empires” through the exploitation of legal loopholes in order to evade US import taxes and sanctions scrutiny.
Shein chose not to provide a statement regarding the reports.
This report includes information from Reuters.