2024-04-01 13:36:15
Sheein, a Chinese fast fashion shopping mall that targets Generation Z around the world with ultra-low prices and no offline stores, earned a net profit last year that was nearly three times that of the previous year. Thanks to its rapid growth, SHIN is aiming to become the ‘largest player’ in the US initial public offering (IPO) market this year. If the Chinese authorities allow Xuyin’s IPO, there is a possibility that Chinese technology companies will be listed on the US stock market again.
The British Financial Times reported on the 30th of last month, citing internal sources, that Shein had sales of $45 billion (approximately 60.7 trillion won) and net profit of $2 billion last year. It soared nearly three times compared to last year’s revenue ($700 million). It has already surpassed Sweden’s H&M ($820 million), which is considered a rival, and ranks second after the industry’s top company, Spain’s Inditex (Zara’s parent company, $5.8 billion).
Shein has captured the hearts of young people in the U.S. and around the world with ultra-low prices and a fast supply chain. With the goal of entering the New York Stock Exchange in November, we have privately applied for listing with the US Securities and Exchange Commission (SEC) and are awaiting a response. As of May last year, the company’s value was estimated at $66 billion, and it is targeting $90 billion this year. If the IPO is successful this year, it is likely to become the biggest issue of the year, about 20 times higher than the corporate value of Reddit, a U.S. social media company listed on the 21st (less than $5 billion).
Xuyin’s headquarters is in Singapore, but it has about 10,000 employees in mainland China and conducts practical business, including logistics. For reasons such as data security, China requires its companies to obtain prior approval when applying for an overseas IPO. Xuyin has requested approval for the stock sale from the China Securities Regulatory Commission and the Cyberspace Administration of China (CAC), which he expects to approve the sale within a few weeks, the FT said.
U.S. IPOs of Chinese technology companies have plummeted since the U.S. Congress passed a bill at the end of 2020 to expel Chinese companies that have refused U.S. accounting oversight for three consecutive years. In this situation, in 2021, ride-hailing company Didi Chuxing pushed ahead with an IPO in the United States despite opposition from China, but was eventually delisted a year later due to China’s regulatory withdrawal. The FT evaluated Xuyin’s IPO as “a test of whether Chinese authorities will allow domestic companies to raise billions of dollars on Wall Street.”
Reporter Kim Cheol-joong [email protected]
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2024-04-01 13:36:15