Shein has denied a media report that it has registered for an initial public offering (IPO) in New York.
Reuters reported Thursday (June 29) that the fast-fashion retailer has confidentially submitted its registration with the Securities and Exchange Commission (SEC) and that its IPO could happen before the end of the year. The report cited unnamed sources.
Reached by PYMNTS, a Shein spokesperson said via email: “Shein denies these rumors.”
Shein has been considering an IPO for at least three years but has held off because of market volatility and U.S. concerns about Chinese accounting practices, according to the Reuters report.
An IPO could make the online retailer the most valuable Chinese company to go public in the U.S. since Didi Global, the ride-hailing firm that was valued at $68 billion when it listed in 2021.
It was reported in March that Shein was valued at $64 billion in a funding round that raised $2 billion. That valuation was one-third lower than the one it had in a previous fundraising effort held in 2022, Reuters reported in March.
In the same report, Reuters said that Shein had held talks with investment banks to find someone to lead its IPO and that its market listing could come in the latter half of the year.
The company’s projected annual revenue of $58.5 billion would top today’s combined sales of Shein’s competitors, H&M and Zara, according to the report.
In recent months, Shein has established a third-party marketplace, expanded the marketplace to include home appliances and smart home products, enhanced its market presence in Europe and Mexico, and expanded its offering of locally manufactured products, signaling a shift toward diversifying its China-centered supply chain.
The planned stock market debut would come at a time of heightened tensions between the U.S. and China, according to the Reuters report.
It would also come as Shein itself has faced allegations in the U.S. that it uses materials produced by forced labor, the report said. The company denies those allegations.