TOPLINE
Shein, a China-based company that dominates the fast-fashion industry, has confidentially filed to go public, the Wall Street Journal and CNBC reported Monday.
KEY FACTS
Shein will be working with Goldman Sachs, JPMorgan Chase and Morgan Stanley as underwriters on the offering, the Wall Street Journal reported.
The initial public offering could happen as soon as 2024, people with knowledge of the matter told CNBC and the Journal.
Last year Shein was valued at $100 billion—worth more than the combined value of two of its fast-fashion competitors, Zara and H&M, according to previous Forbes reporting—though Bloomberg reported the value dropped to between $50 billion and $60 billion this year as higher interest rates and an uncertainty cloud the market.
Shein declined to comment to Forbes.
WHAT TO WATCH FOR
Earlier this month, people familiar with Shein’s IPO intentions told Bloomberg the company hopes to get a valuation of around $80 billion or $90 billion before going public, which would be one of the largest initial public offerings ever.
KEY BACKGROUND
An IPO has long been rumored for Shein, which was founded in 2008 and quickly gained ground in the fast-fashion field. It’s known for selling trendy clothes that target Gen Z buyers with dirt cheap prices, regularly offering products for under $10. The company has faced its fair share of controversy and has regularly been criticized for relying on cotton produced with forced labor in China’s Xinjiang region. Earlier this year, 16 state attorneys general formally asked the Securities and Exchange Commission to not allow Shein to go public until it can prove the company doesn’t use forced labor, CNBC reported. Shein is also under investigation by a House committee scrutinizing China, and a report from June said Shein and Temu—another fast fashion company—“raise serious concerns about the continued presence of products made with forced labor contaminating American imports.” Shein has denied that it uses forced labor, Bloomberg reported.
FORBES VALUATION
We estimate Sky Xu, founder and CEO of Shein, to be worth $11.2 billion as of Monday evening, making him the 166th wealthiest person in the world. He was also listed at No. 19 on Forbes’ China’s Richest list, published earlier this month.
KEY BACKGROUND
An IPO has long been rumored for Shein, which was founded in 2008 and quickly gained ground in the fast-fashion field. It’s known for selling trendy clothes that target Gen Z buyers with dirt cheap prices, regularly offering products for under $10. The company has faced its fair share of controversy and has regularly been criticized for relying on cotton produced with forced labor in China’s Xinjiang region, home to the Uyghur population. Earlier this year, 16 state attorneys general formally asked the Securities and Exchange Commission to not allow Shein to go public until it can prove the company doesn’t use forced labor, CNBC reported. Shein is also under investigation by a House committee scrutinizing China, and a report from June said Shein and Temu—another fast fashion company—“raise serious concerns about the continued presence of products made with forced labor contaminating American imports.” Shein has denied that it uses forced labor, Bloomberg reported.