Photo by Becca McHaffie on Unsplash
SHEIN Quietly Goes Public and Readies for High-Value US IPO
November 28, 2023
SHEIN, an online fast-fashion company from China, has discreetly filed for an initial public offering (IPO) in the U.S., stirring anticipation of one of the largest IPOs in recent years. With a customer base in the hundreds of millions, SHEIN is aiming for a substantial valuation above its current $66 billion.
The successful company has made waves in the industry for its affordable range of on-trend clothing. Its success has soared globally, with the U.S. being its largest market. Goldman Sachs, JPMorgan Chase, and Morgan Stanley have been brought on board to underwrite the upcoming offering, which insiders predict could launch in 2024.
Recent years have proven difficult for U.S. IPOs, with fewer companies going public due to high interest rates and safer investment alternatives. Despite this, insiders anticipate gradual growth in companies seeking IPOs in the coming year.
SHEIN, currently headquartered in Singapore, has also been expanding beyond online clothing retail. It has started incorporating third-party sellers, and it acquired stakes in Forever 21 and British women’s fashion brand Missguided, allowing it to enter the brick-and-mortar retail space.
However, the fashion company has faced scrutiny over its supply chain rooted in China’s southern Guangdong province. Questions have been raised about possible links to forced labor in China’s Xinjiang region, allegations the retailer firmly denies. SHEIN has also diversified its supply chain, manufacturing outside China in Turkey and Brazil and establishing a partnership with a major Indian retailer.
Coupling its vast selection of budget-friendly apparel with a nimble supply chain strategy, SHEIN continues to respond agilely to market demands, though this has invited scrutiny from U.S. lawmakers over its sourcing practices.
Amid regulatory scrutiny and geopolitical tensions, SHEIN’s upcoming IPO will be a critical transition for the firm, potentially marking its place as the largest public offering for a company of Chinese origin since Didi Global’s 2021 IPO. And yet, according to the Wall Street Journal, “The retailer sells to online shoppers in more than 150 countries but not those in China.”
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