(CTN News) – Chinese online fashion retailer Shein has reportedly registered for an initial public offering (IPO) in New York, aiming to become the most valuable Chinese company to go public in the United States since Didi Global’s listing in 2021.
Shein Takes the Next Step with US IPO Filing as Controversies Linger
According to Reuters, Shein’s IPO registration has been submitted confidentially to the US Securities and Exchange Commission (SEC), with the stock market debut potentially occurring before the end of 2023.
Despite its impressive valuation of over $60 billion, Shein has come under scrutiny from US lawmakers due to concerns regarding its labor practices.
The company’s IPO announcement coincides with ongoing debates about Chinese technology giants as Beijing intensifies its crackdown on antitrust and data security regulations.
To diversify its supply chain, Shein has expressed plans to strengthen its presence in Europe and Mexico, including selling more locally made products.
The company intends to launch an online marketplace in Mexico, where customers can purchase products from third-party sellers alongside Shein’s brand of affordable dresses and jeans. Subsequent rollouts are planned for Germany, Spain, France, and Italy.
Shein’s US IPO Filing: A Gateway to Global Expansion
However, Shein’s heavy reliance on contract manufacturers in China has placed the company amidst US-China tensions affecting various sectors.
While this manufacturing system has facilitated Shein’s rapid growth, enabling it to outpace competitors like Zara and H&M in the US fast-fashion market, it has also criticized the company. Accusations range from design theft to alleged links to forced labor and concerns about the environmental impact of overconsumption.
In summary, Shein’s IPO registration signifies a significant milestone for the Chinese fashion retailer. As it navigates scrutiny over its labor practices, the company aims to expand its operations globally, diversify its supply chain, and solidify its position in the fast-fashion market. Investors and industry observers alike will closely watch the outcome of its stock market debut.