Shein, the Chinese fast fashion e-commerce giant, has confidentially filed paperwork with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO) on an American stock exchange, according to two people familiar with the plans.
Founded in 2008 and headquartered in Guangzhou, China, Shein has experienced massive growth over the last decade to become one of the world’s largest online-only fashion retailers. Shein is reportedly seeking a valuation of between $50-60 billion from the upcoming IPO, which would make it one of the highest valued issuers in recent years.
The company has built a loyal customer base of mostly young women drawn to Shein’s incredibly fast production cycle that allows new styles to hit its website daily. Shein’s rock-bottom pricing and constant social media marketing have turbocharged its popularity. In 2022 alone, Shein generated $16 billion in sales.
Plans for the IPO come amid escalating tensions between China and the U.S. over trade rules, corporate access to U.S. stock exchanges, and other issues. Shein also faces questions about its supply chain transparency and environmental impacts. However, the company’s remarkable growth and profitability is expected to overcome those investor concerns.
While full details are yet to emerge, early estimates peg Shein’s IPO valuation at between $90-100 billion. The offering is slated to hit public markets in early 2024. When it does, the Shein IPO will instantly become one of the highest valued American stock offerings in history.
