Shein has reportedly confidentially filed to go public in the United States, potentially making it one of the biggest initial public offerings (IPOs) in recent years.
The online fashion company’s IPO is expected to take place in 2024, the Wall Street Journal (WSJ) reported Monday (Nov. 27), citing unnamed sources.
Reached by PYMNTS, a Shein spokesperson declined to comment on the report.
The China-founded and now Singapore-based company, valued at $66 billion earlier this year, has quickly become one of the largest fashion brands in the world, according to the report. Shein is likely to aim for an even higher valuation in its IPO.
Shein has disrupted the clothing industry by offering on-trend skirts for $5 and jeans for $9, catering to changing consumer tastes and offering a wide selection of affordable apparel, the report said. In 2022, the company recorded $23 billion in revenue and $800 million in net profit. Moreover, it has reported record revenue and income for the first three quarters of 2023.
With online shoppers in over 150 countries, the U.S. is Shein’s largest market, per the report. In addition to its own online presence, Shein has been expanding into other areas, such as becoming a marketplace for third-party sellers, putting it in direct competition with established eCommerce giants like Amazon and Temu.
To solidify its position in key markets, Shein has been revamping its leadership team, according to the report. The company recently hired Frances Townsend, a former executive at Activision Blizzard and a former government official, as a senior adviser. Shein is also diversifying its supply chain by manufacturing in countries like Turkey and Brazil and forming partnerships with major retailers.
However, Shein has faced scrutiny over its supply chain practices, the report said. U.S. lawmakers have urged the company to address concerns about sourcing cotton from China’s Xinjiang region, where allegations of forced labor and human rights abuses have been reported. Shein has stated that it has a “zero-tolerance policy” for forced labor and has implemented measures to comply with U.S. law.
If successful, Shein’s IPO could make it the largest stock offering for a Chinese-originated company since Didi Global’s IPO in 2021, per the report. Didi, a ride-hailing giant, delisted from the New York Stock Exchange after being caught in Beijing’s tech crackdown.
Shein’s decision to relocate its headquarters from China to Singapore in 2021 could prove beneficial as geopolitical tensions rise, the report said. However, the company’s supply chain remains rooted in China’s Guangdong province, the country’s major manufacturing hub.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.