Shein plans US expansion with confidential IPO filing
Shein, the fast fashion giant based in China, has confidentially filed for an initial public offering in the United States, according to anonymous sources.
Sources who were briefed about the matter said it is likely to be one of the largest US listings of the past decade and will be a significant test of US investor appetite for Chinese companies amid volatile markets and geopolitical tensions.
Back in March, it was reported that Shein was raising £1.6 billion ($2 billion) in a new funding round to ready for a potential IPO in the US, which would take place before the end of 2023.
The etailer, which became hugely popular during the coronavirus pandemic when people across the globe embraced online shopping, has hired JPMorgan Chase, Morgan Stanley and Goldman Sachs to advise it on the IPO, according to The Financial Times.
Shein is backed by large investors including Abu Dhabi sovereign wealth fund Mubadala, venture capital group Sequoia China and private equity group General Atlantic.
Investors had expected Shein to make the move to file for a US IPO this year after the company began to address a range of criticisms in an attempt to change perceptions about its business and practices. A public offering in the United States is likely to invite significant regulatory scrutiny.
In recent years, Shein has gained popularity among U.S. consumers, particularly from Gen Z. It was most recently valued at £53.8 billion ($64 billion), down by a third from last year.
This news follows Shein's expansion plans across the Atlantic. Just last week, it was revealed that the company is looking to establish a hub in Manchester, otherwise known as fast-fashion central. It will initially hire 15 clothing buyers and designers.
Shein also made its first acquisition in the UK this year, buying women’s clothing brand Missguided for an undisclosed amount. The company said it plans to "reignite" the brand, which was bought out of administration just a year and a half ago by Mike Ashley’s Frasers Group.
