Chinese fast fashion giant Shein files to go public in US in IPO that could be ... trends now
Chinese fast fashion company Shein has confidentially filed to go public in the US in a move that could be one of the biggest IPOs in years.
Banking giants JPMorgan Chase, Goldman Sachs and Morgan Stanley have been tasked as lead underwriters on the deal that could happen next year, according to The Wall Street Journal.
Shein, which was founded in Nanjing but is now based in Singapore, was recently valued at $66billion following a fundraising round in May.
It has dominated the world's clothing industry over the last few years with cheap and trending fashion items including $5 skirts and $9 jeans.
Chinese fast fashion company Shein has confidentially filed to go public in the US in a move which could be one of the biggest IPOs in years
It has dominated the world's clothing industry over the last few years with cheap and trending fashion items including $5 skirts and $9 jeans
But the Chinese retailer has been criticized over allegations of workers in supply chains being exploited and the negative environmental impacts of fast fashion
Chinese media reported on Shein's confidential filing in the US earlier. But it has been a difficult two years for the country's IPO market.
Few companies have listed their shares in the US due to the high interest rates and other less-risky investments.
Most of those which have gone public have performed poorly. The biggest IPO this year was British chip designer Arm Holdings which debuted in September and was valued at around $55billion.
Expert bankers and advisers expect more companies to go public next year but have warned the pickup may be slow.
Last year, Shein recorded $23billion in revenue and $800million in net profit. It also told investors it delivered record revenue and income for the first three quarters of 2023, according to The Wall Street Journal.
SEC rules allow firms to keep listing documents privately for a certain period ahead of their IPOs.
Shein will reveal them in the weeks before its offering and the documents will include details about its financials.
The Chinese retailer sells its items online to shoppers in more than 150 countries but this does not include China. The US is the company's largest market.
It recently purchased a stake in the operator of retailer Forever 21 in a move which will allow it to sell its items in physical stores. It also bought British women’s fashion brand Missguided.
Shein could become the biggest US stock offering for a company that originated in China since ride-hailing company Didi Global’s 2021 IPO.
Didi was valued at $68.4billion on the day it debuted but was delisted from the New York Stock Exchange 11 months