Shein confidentially files for U.S. IPO

Shein has confidentially filed to go public in the U.S. as the Chinese-founded fast-fashion juggernaut looks to expand its global reach with a long-rumored initial public offering. 

The retailer was last valued at $66 billion and could be ready to start trading on the public markets as soon as 2024, people familiar with the matter said Monday.

• Shein is headquartered in Singapore and was founded in Nanjing, China in 2008. 
• In 2022, Shein was the world's largest fashion retailer with a value of $100 billion — more than fast-fashion predecessors H&M and Zara combined. 
• Shein uses on-demand manufacturing to reduce inventory waste and deliver affordable products. 
• It has been criticized for its labor practices and the role of fast fashion in pollution. 
• Shein promotes clothes under $30, $20 or even $5, mostly made in China and shipped directly to shoppers.
  
• https://us.shein.com/?ref=www&rep=dir&ret=us
  

Shein has faced a number of controversies, including: 

• Design theft: Artists have filed a racketeering lawsuit accusing Shein of stealing designs.
• Import tax laws: A congressional report says Shein abuses a loophole in import tax laws.
• Forced labor: Lawmakers have called for an investigation into alleged use of forced labor  in Xinjiang.

A confidential filing is common, as it allows companies to communicate with the U.S. Securities and Exchange Commission and make any necessary adjustments to their filings in private. Over the next few months, Shein will likely make tweaks to its paperwork and answer numerous questions from the agency. The filing will be made public once the company is ready to move forward with its IPO. At that point, those communications with the SEC and any adjustments to its paperwork will be released as well.

Shein has been on a meteoric rise over the past few years after it won over consumers across the globe with its fashion-forward designs, endless assortment and dirt-cheap prices. But Shein has faced a series of challenges along the way and faced accusations of using forced labor in its supply chain, violating labor laws, harming the environment and stealing designs from independent artists.

The company is currently under investigation by the newly formed House Select Committee on the Chinese Communist Party and has faced scrutiny over its ties to Beijing. Numerous lawmakers, including 16 Republican attorneys general, have called on the SEC to ensure Shein isn’t using forced labor in its supply chain before it’s allowed to start trading in the U.S.