It is said that Shein has contacted US banks and stock exchanges to discuss IPO matters

It is learned that on July 4, Reuters reported that people familiar with the matter revealed that Shein is working with at least three investment banks in the United States to discuss an IPO in the United States and has contacted the New York Stock Exchange and Nasdaq. According to six people familiar with the matter, Goldman Sachs, Morgan Stanley and JPMorgan Chase are among the banks assisting Shein's IPO.

Not long ago, Shein was rumored to have secretly submitted an application for listing in the United States, but Shein officials later denied the rumor. According to people familiar with the matter, Shein's IPO time has not yet been determined, and the IPO time may be delayed due to allegations from U.S. congressmen regarding labor treatment.

The report quoted people familiar with the matter as saying that both Nasdaq and the New York Stock Exchange in the United States are in contact with Shein, trying to compete for Shein to be listed on their exchanges.

Officials at Singapore-based Shein declined to comment on any IPO plans, discussions with investment banks and exchanges when contacted by Reuters. Goldman Sachs, Morgan Stanley, Nasdaq and the New York Stock Exchange declined to comment, while JPMorgan did not respond.

According to people familiar with the matter, Shein has not yet submitted IPO documents to the U.S. Securities and Exchange Commission, but has been drafting IPO documents.

In recent years, Shein has been rumored to be going public in the United States. Since around 2020, there have been reports almost every year that Shein is preparing for an IPO in the United States. Although Shein has officially denied the IPO rumors, its actions show that Shein may be preparing for an IPO.

In 2022, Shein saw its first annual revenue growth and profit decline, and its valuation shrank from $100 billion in April last year to $64 billion at present.

To this end, Shein began to seek new growth opportunities. It started testing third-party platforms in November last year and expanded the scale of offline pop-up stores. This year, Shein has also expanded its platform model to markets such as North America and Europe, which will soon be launched, and introduced more brands in categories other than fashion.

Expansion requires more funds. For Shein, going public is the most effective way to obtain financing, and it is also a means to relieve pressure from investors. Shein has obtained financing from many well-known investment institutions. The shrinking valuation and declining revenue may damage investor confidence.

In February this year, Shein stated in a document to investors that by 2025, it will achieve an annual revenue target of US$58.5 billion and a total sales GM target of US$80.5 billion, an increase of 174% from 2022.

At the same time, Shein is also committed to improving its brand image in the United States, including disclosing its 2022 supply chain review report and cooperating with sustainable fashion companies. In May this year, Shein was jointly opposed by 24 members of the U.S. House of Representatives, who asked the stock exchange not to approve its listing application before Shein proved that its supply chain was clean.

There are also many speculations about Shein's listing status in the United States. There are rumors that Shein may be listed as a Singaporean company. If it is listed as a Chinese company, it may encounter many obstacles. Currently, the United States is discussing whether to cancel the tax-free threshold for small parcel imports. If implemented, Chinese cross-border e-commerce companies such as Shein will face a significant increase in costs.

Editor✎ Ashley/

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