SHEIN has refuted a report claiming that it has filed paperwork for a New York initial public offering (IPO).
According to Reuters, the fast-fashion retailer registered with the Securities and Exchange Commission (SEC) in a confidential manner, and its initial public offering (IPO) may take place before the end of the year. Unnamed sources were cited in the report.
According to the Reuters report, SHEIN has been thinking about an IPO for at least three years but has postponed it due to market instability and US worries over Chinese accounting practises.
SHEIN was reportedly valued at US $ 64 billion in a fundraising transaction that brought in US $ 2 billion in March. According to Reuters, the valuation was a third lower than the one it had in a prior fundraising campaign held in 2022.
Also as per the Reuters report, SHEIN conducted discussions with investment banks to identify a leader for its initial public offering and that its market listing might occur in the second part of the year.
According to the research, the company’s estimated annual revenue of US $ 58.5 billion would surpass the combined sales of SHEIN’s rivals H&M and Zara as of the present.
SHEIN has made a shift towards diversifying its China-centered supply chain in recent months by creating a third-party marketplace, expanding it to include home appliances and smart home products, enhancing its market presence in Europe and Mexico, and expanding its selection of locally made goods.
