The controversial Chinese fast-fashion brand Shein has confidentially filed to go public in the United States, reports CNBC. Shein was founded in its current iteration in 2012, and since then has become a favorite fashion brand of Gen Z thanks to its marketing and advertising across social media platforms.
However, the company has experienced several controversies across its decade-plus of life, including allegations that it uses forced labor in the manufacturing of its clothes. The company has also been criticized for its clothing’s negative environmental impact. Still, the company’s popularity has led to valuations as high as $100 billion.
Shein’s IPO filing signifies that the company wants to capitalize on that popularity sooner rather than later. Notably, the company is choosing to file confidentially, following in the footsteps of companies like Airbnb, Slack, and Uber. A confidential filing means that the company’s S-1 forms will only become publicly available 15 days before the offering takes place. This allows Shein to continue to refine its IPO strategy away from the eyes of the public, while also moving through the steps for the company to go public in the U.S. It is thought that Shein could begin trading in the United States as soon as next year.
Earlier this year, Shein entered into a partnership with fashion retailer Forever 21, which saw Shein products become available in major U.S. retail stores for the first time. The deal also signaled that Shein wanted to have a more visible real-world presence to increase awareness of the brand. Previously, Shein primarily sold its products online only.
There’s no word yet on what Shein’s stock ticker will be, nor what its IPO share price will be. First, Shein needs to work out its current valuation—another reason for filing for the IPO confidentially. The most recent estimates have pegged Shein to be worth around $66 billion, though the IPO valuation could be higher or lower.
Goldman Sachs, JPMorgan, and Morgan Stanley are reportedly the lead underwriters on the Shein IPO.
Recognize your brand’s excellence by applying to this year’s Brands That Matter Awards before the final deadline, June 7.
Sign up for Brands That Matter notifications here.
