Light Wave


Chinese fast-fashion giant Shein seeks public listing to fuel global growth

By Jake Beardslee · November 28, 2023

In brief…

  • Shein has confidentially filed for a U.S. IPO to expand global reach, potentially launching in 2024 with a current unclear valuation.
  • Shein has rapidly grown but faced various accusations, now trying to improve its image ahead of going public.
  • Major unknowns remain around mysterious CEO Sky Xu.
  • Shein is working with Goldman Sachs, JPMorgan and Morgan Stanley on the offering.
Shein aims to go public in the U.S. by 2024 to expand despite facing accusations and remaining mysteries around its CEO.

Chinese fast-fashion giant Shein has confidentially filed for an initial public offering in the United States, reported CNBC. The move comes as Shein aims to expand its global reach.

Shein was valued at $66 billion in its most recent private fundraising round. However, sources familiar with the matter told CNBC that its current valuation is a point of discussion between Shein and its advisors ahead of going public. The company could launch its IPO in 2024, though its ultimate market debut valuation remains unclear amidst the ongoing talks.

A confidential filing allows Shein to privately communicate with the SEC and adjust its paperwork before releasing it publicly when ready to proceed.

Shein has seen rapid expansion in the past few years, appealing to shoppers worldwide through trendy styles, a vast array of products, and extremely low costs. But the company has confronted allegations on issues ranging from labor conditions, copying original artists, and pollution concerns.

Shein is under investigation by the House Select Committee on the Chinese Communist Party. Lawmakers have called on the SEC to ensure no forced labor in Shein’s supply chain before a U.S. listing. Marcelo Claure, Shein’s group vice chair, has said “there’s no such thing as forced labor” in factories he visited, but Shein itself has acknowledged forced labor issues.

Ahead of its planned IPO, Shein has attempted to boost its reputation after previously maintaining a low profile. Recent efforts feature flashy promotional gatherings, influencer visits to its factories, and a one-third purchase of Sparc Group to partner with mall giant Simon Property and brand manager Authentic Brands.

Yet questions linger surrounding Chinese chief executive Sky Xu, who shuns media interviews unlike leaders of other publicly-listed U.S. corporations.

Shein has hired Goldman Sachs, JPMorgan Chase, and Morgan Stanley as lead underwriters for the offering.