Shein pop-up at the Venetian Hotel, Las Vegas (Credit: Vik Chohan Photography & Photo Booth)
A global online retailer of value-priced fashion and lifestyle items is reportedly planning to go public in the U.S.
According to CNBC, Shein, which is based in Singapore but was founded in China, has confidentially filed for an initial public offering (IPO) in the U.S. stock market with the Securities & Exchange Commission (SEC). Doing so allows Shein to make adjustments to its proposed IPO with the SEC in private before publicly making a filing.
Once a confidential IPO is made public, all communications with the SEC and any adjustments made to the initial filing are also opened to the public. Issues facing a potential Shein IPO include investigations over possible ties to the Chinese government being conducted by the House Select Committee on the Chinese Communist Party, as well as an August 2023 letter signed by 16 Republican state attorneys general asking that the SEC ensure the company doesn’t have any forced labor in its supply chain before allowing it to go public in the U.S.
Shein, which launched in 2012 and reported annual revenue of about $22.7 billion in 2022, serves customers in more than 150 countries around the world — including the United States. It has reportedly been valued at $66 billion and will use Goldman Sachs, JPMorgan and Morgan Stanley as the lead underwriters for its planned IPO.
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Shein focuses on U.S. market
The retailer has been expanding its presence in the U.S. via a variety of partnerships, including temporary pop-up shops. Shein debuted its first temporary store concept in 2018, in Miami. In 2022, the company stepped up its game and hosted more than 40 pop-up locations globally — 25% of those stores were in the U.S.
The company launched its first pop-up of 2023 in Las Vegas during Memorial Day weekend, May 26-29. It was the first of many temporary Shein spaces planned for 2023, which also included a collaboration between Shein and Forever 21.
Other recent U.S.-based moves Shein include a strategic partnership with Sparc Group Holdings" under which the retailer will acquire an approximately one-third interest in Sparc Group, a joint venture that includes Simon Property Group and Authentic Brands Group, the brand management company with a fast-growing portfolio of well-known retail names that include Forever 21, Aeropostale, Brooks Brothers, Lucky Brand, Nine West, Nautica and more.
In addition, Sparc Group will become a minority shareholder in Shein. Financial terms of the agreement were not disclosed.