Chinese e-commerce giant Shein is said to have filed for a confidential IPO in the US to test interest from investors in the region.
According to reports, the company is working with the investment banks Goldman Sachs, JPMorgan Chase and Morgan Stanley, each of which will act as underwriter. Further speculation suggests that Shein may be planning its stock sale for 2024. The information was first reported by China’s Shanghai Securities Journal and later confirmed by Wall Street Journal sources.
While the valuation of the IPO has not yet been disclosed, a Bloomberg report in early November said the company was targeting a market value of up to $90 billion (€82.19 billion).
Reports of a possible IPO have been circulating since the start of the year, when it was revealed that Shein had cut its valuation by a third to $64 billion before closing a $2 billion funding round in May.
In June it was announced that the Shanghai-based company had filed confidential documents for the IPO. The Reuters news agency predicted at the time that the IPO could take place towards the end of the year.
Legal troubles amid record-breaking sales
2023 has proven to be a difficult year for Shein, as it faced legal issues with international regulators and rival fast fashion companies.
While both France and the US have launched investigations into Shein over allegations of forced labor and human rights violations, companies such as H&M and Temu are pursuing rights violations and antitrust lawsuits against Shein.
Nevertheless, this year was a year of superlatives in terms of sales. In August, news channel CNBC reported that Shein’s Executive Vice Chairman Donald Tang told investors that Shein had “achieved the highest net profit in the company’s history in the first half of the year.”
In September, it was revealed that Shein’s UK subsidiary had sales of over £1 billion in the 16 months from September 6, 2021 to December 31, 2022, according to UK Companies Register filings.
Shortly afterwards, it was announced that Shein would be acquiring fast-fashion retailer Missguided from Frasers Group, and rumors also emerged about a possible takeover of Asos’ Topshop.
This translated post previously appeared on FashionUnited.uk