Chinese online fashion giant Shein, renowned for capturing the hearts of millions of global shoppers, has confidentially submitted its paperwork for an initial public offering (IPO) in the United States, potentially marking one of the most significant IPOs in recent years.
Lead underwriters for the IPO include prestigious financial institutions such as Goldman Sachs, JPMorgan Chase, and Morgan Stanley. Sources indicate that Shein, headquartered in Singapore, is considering launching its IPO sometime in 2024. The size of the deal and the IPO valuation remain undetermined. Earlier reports from Bloomberg suggested a target of up to $90 billion for the IPO.
While the IPO journey unfolds, Shein is anticipated to fine-tune its documentation and respond to inquiries from the Securities and Exchange Commission (SEC) over the coming months. The public filing will be disclosed when Shein is prepared to advance with its IPO. Subsequently, all communications with the SEC and any modifications to its documentation will be made public.
Founded in China over a decade ago, Shein is presently under scrutiny by the newly established House Select Committee on the Chinese Communist Party. Concerns regarding the company’s connections to Beijing have led to increased scrutiny. Sixteen Republican attorneys general, among others, have urged the SEC to ensure that Shein does not employ forced labor within its supply chain before gaining approval for U.S. trading.
In the shopping category globally, SHEIN emerged as the most downloaded app of 2022, amassing 229 million new downloads across both the App Store and Google Play.