SHEIN APPLIES TO FLOAT ON THE STOCK MARKET. In recent months ´fashions brand´ shein has been everywhere. It´s been hard to not see it advertised online and it has grown rapidly. Reports from Reuters state, Shein lodged confidential paperwork with US securities regulators, with intent to go public in the US.
If listed the initial public offering (IPO) could very easily be the largest in years. The rise of Shein can be attested to their ability to connect and implement a large network of Chinese small-shipment manufacturers, alined with a massive online presence. Whether or not the quality of the product is of a high standard, their sales have been incredible. According to the Wall Street Journal, Shein told investors it generated $23 billion in revenue and $800 million in net profit in 2022.
Reports from the US state that JPMorgan Chase, Morgan Stanley and Goldman Sachs have been hired as underwriters for the move. In 2024 their were many rumours circulating that the company had indeed intended to take the company public.
The Singapore based company, is the third most valuable start-up in the world. Over the last decade it has amassed a valuation of $100bn in 2022. Shein was founded in China by entrepreneur Chris Xu, born in 1984 in the Chinese province of Shandong. He graduated from Qingdao University of Science and Technology in 2007.
The massive valuation has dropped however. It was valued in May of this year just over $60bn, but that does not detract from the fact that if the IPO goes ahead, Shein (shortened from the original name SheInside) would become the most valuable company, founded in China, to go public in the US, since Didi Global’s $68bn valuation in 2021.
In October of this year, Authentic Brands Group (Authentic), a global brand development, marketing and entertainment platform, and SHEIN, a global online fashion and lifestyle retailer, announced the signing of a long-term agreement for the Forever 21 brand in key lifestyle and fashion categories for men and women, which welcomes leading trend and lifestyle brand Forever 21 to SHEIN. Shein also announced the acquisition of Missguided, a bold and forward-thinking women’s fashion brand, from Frasers Group.
In this Bloomberg report from last month, the company told investor to expect an $80bn to $90bn valuation.
On May 3 of this year, a Select Committee opened initial investigations into Shein, and Temu. The investigations were to find evidence on allegations of breaking slave labour laws and additional accusations of using using legislative loopholes to avoid US import tax and sanction checks.
