Fast-fashion giant Shein has filed for an IPO in the United States that should help them to grow further, from twenty billion euros in sales last year to more than fifty billion in 2025.
Sensitive move
Shein has privately filed new documents in preparation of a flotation, the Financial Times reports based on insiders’ input. Business banks JPMorgan Chase, Morgan Stanley and Goldman Sachs are to assist the Chinese fashion giant in one of the biggest financial moves of the year.
While Shein has had IPO plans for a while, the Chinese juggernaut has a lot of work on its plate before the new attempt can be honoured. During this trade war with the ‘Middle Empire’, the United States are treading very carefully. Among other things, Shein will have to prove it does not use cotton or other materials that come from forced labour in the Xinjiang region, where Uygurs are forced to work in so-called “re-education camps”.
Already surpassed?
The American watchdog is also highly critical when it comes to working conditions in Shein factories. Moreover, most Shein parcels can avoid tax checks by American customs, as they are so many and so low in value.
The application reveals that Shein has some important backers, such as Abu Dhabi state fund Mubadala, venture capital fund Sequoia China and private equity fund General Atlantic. They believe and invest heavily in Shein, despite their new favourite company already being surpassed as most downloaded retail app by its younger rival Temu. Goldman Sachs believes Temu will be worth thirty billion euros in gross sales by 2024.
