The Chinese online-only ultra-fast fashion giant SHEIN has been in talks with potential investors, including the American growth equity firm General Atlantic, to raise approximately $1 billion at a valuation of $100 billion, as those close to the matter told Bloomberg on 3 April.
Speculation around the most mysterious billion-dollar company going public has been circulating as a result of the rapid rise of SHEIN in recent years. The retailer was first rumoured to be chasing “the largest IPO in history at $47 billion” last May and was reported to have revived an IPO on the New York Stock Exchange earlier this January.
Despite previous denials saying “SHEIN has no plans to IPO”, the company is once again believed to have been preparing for a potential listing in the US market with the latest aggressive expansion in Singapore being a major sign of this intention. It is also reported that SHEIN’s founder Chris Xu has now gained Singaporean citizenship in a bid to bypass tougher regulations for offshore IPOs in mainland China – something the company had also denied before.
Born in 2008, the Chinese e-commerce platform has grown into a juggernaut thanks to its data-driven clothing design and fast delivery supported by a savvy supply chain. With a strong target on Gen Z consumers in the overseas market, SHEIN blew past global labels such as H&M and Zara in the United States in 2021, and took the crown from Amazon, becoming the top e-commerce app in the shopping categories of both iOS and Android devices in the country.
The momentum of SHEIN has won over investors including IDG Capital, Sequoia, and Tiger Global. With the company’s market value having doubled from $50 billion to $100 billion within a year, SHEIN’s potential will undoubtedly draw in more who are looking for a slice of this rising challenger. And if this initial public offering is to be forthcoming in the end, it would further advance the global market status of this fashion giant.
