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After months of speculation, e-comm giant Shein has confidentially filed for a US IPO, CNBC reported.
The company, which is valued at $66 billion, hired Goldman Sachs, JPMorgan, and Morgan Stanley as lead underwriters, and while Shein has yet to officially confirm the news, it could start trading on public markets as early as 2024, according to CNBC’s sources.
Though adjustments are likely, as the company filed its IPO privately, it will make the filing public once all the adjustments with the SEC are final, per CNBC.
The news comes after months of industry rumors around Shein’s potential filing. The path to the IPO, however, has been challenging, as the company continued to garner criticism for unsustainable practices, alleged labor abuses, and copying young designers’ works. In fact, bipartisan lawmakers have encouraged the SEC to investigate accusations of “mistreatment of Uyghurs, a marginalized group in China,” Retail Brew previously reported.
But the retailer has denied these allegations and embarked on heavily altering its image by working with independent designers on incubator programs and highlighting its sustainability efforts.
Additionally, a company spokesperson previously told CNBC: “We have zero tolerance for forced labor,” and that it is “committed to respecting human rights and adhering to local laws and regulations in each market we operate in.”
Whether consumers have bought into the brand’s efforts to shift public perception remains to be seen, but the news of its IPO filing could be an overall positive for the e-commerce industry as cash-strapped consumers seek deals.
“The Shein IPO is a huge green flag for e-commerce businesses as Shein started as a DTC business,” Juan Pellerano-Rendón, CMO at Swap, an e-commerce operational needs platform, told Retail Brew in an emailed statement. “What this IPO really proves is that consumers want to be sustainable, only to a point. Consumers want items that are cheap and can be accessed quickly, which is exactly what Shein offers. Fast-Fashion continues to have staying power despite most consumers saying they want brands to be sustainable.”