China-founded fashion company Shein has confidentially filed to go public in the United States, two sources familiar with the matter told Reuters on Monday.
Goldman Sachs, JPMorgan Chase and Morgan Stanley have been hired as lead underwriters on the offering, and Shein could go public sometime in 2024, the sources said.
Shein has been planning to go public for the last few years, but halted plans almost twice since then. The fast-fashion giant’s decision now comes at a time when the broader market for new issues remains laggard.
In recent months, public companies such as British chipmaker Arm Holdings, grocery delivery app Instacart, marketing automation firm Klaviyo and luxury sandal maker Birkenstock have disappointed investors with lackluster performances.
Reuters in July reported that Shein has been working with at least three investment banks about a potential IPO and was in talks with the New York Stock Exchange and the Nasdaq.
Shein, which is now based in Singapore, declined to comment.
The company was valued at more than $60 billion in May and is expected to become the most valuable China-founded company to go public in the United States since ride-hailing giant Didi Global’s debut in 2021 at $68 billion valuation.
Fast fashion retailers have been gaining popularity in the United States, with Shein taking away market share from the likes Gap as shoppers look for fresher styles and trendier clothing.
In August, Shein partnered with SPARC Group, a joint venture between Forever 21 owner Authentic Brands and mall operator Simon Property, in an attempt to expand their market reach and build on the growing demand for their products.
Shein along with Temu.com, however, have not been able to see shopper visits to their sites turn into sales and are far behind market leader Amazon.com, which has been able to convert visitors into buyers.
Shein’s confidential IPO was first reported by the Wall Street Journal earlier on Monday.
- Reporting by Pritam Biswas and Ananya Mariam Rajesh in Bengaluru and Anirban Sen in New York; Additional Reporting by Rishabh Jaiswal; Editing by Arun Koyyur and Sherry Jacob-Phillips, of Reuters.
