Shein, a fast fashion retailer, has filed confidentially to go public in the United States. With this step, Shein is likely to become one of the most valuable China-founded companies to go public in the U.S. The IPO comes amid challenging markets and U.S. scrutiny of Chinese companies.
Goldman Sachs, JPMorgan Chase, and Morgan Stanley have been hired as lead underwriters on the offering. Shein has not determined the size of its offering or the valuation at IPO, but Bloomberg reported earlier this month it targeted up to $90 billion in the float. The company, founded in mainland China in 2012, was valued at over $60 billion in a May fundraising.
The fashion company’s move to go public in the U.S. comes at a time when the market for initial public offerings is struggling to rebound after a string of lackluster stock market debuts. However, U.S. IPOs have raised about $23.64 billion so far this year, compared to $21.3 billion during the same period last year.
Shein had started low-profile roadshows for the float in the U.S., and the company is likely to go public in 2024. Although it’s not immediately clear if the company has filed with China Securities Regulatory Commission (CSRC) for the U.S. IPO.
The company, known for its low-cost clothing and direct shipping strategy, has faced criticism for its supply chain. In August, Republican attorneys generals from 16 U.S. states asked the Securities and Exchange Commission to audit Shein’s supply chain for the alleged use of forced labor. Additionally, there have been concerns raised about the company’s strategy to avoid import taxes in the United States.
Despite these challenges, Shein’s move to go public in the U.S. presents an opportunity for the company to tap capital markets at a time when interest rates are peaking and possible changes in U.S. regulations for small retailers are expected.
Overall, Shein’s IPO filing represents a significant development in the fast-fashion industry, marking a milestone for a China-founded e-commerce company operating in the U.S. market.