Is Shein Stock About To Become Public? Rumors Persist Around Potential IPO
Key takeaways
- Shein is said to be looking at an IPO this or early next year
- The fast fashion company has been plagued with forced labor concerns
- Other successful IPOs like Cava and Kenvue might be tempting other companies to go for the debut
Is one of the most popular Chinese retail websites about to go public on the markets? There’s no official word yet, but the rumor mill is in overdrive about Shein potentially going public. After a deals drought, we’re seeing more IPOs returning to the markets — which could be the push Shein needs. Here’s the lowdown.
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What’s happening with Shein?
In July, Reuters reported that Shein was in talks with three investment banks to potentially go for its stock market debut in the U.S. According to the sources, Goldman Sachs, Morgan Stanley and JPMorgan are involved in talks with the NYSE and Nasdaq.
Valued at over $60 billion, fast fashion retailer Shein could be the most valuable company to go public from China after Didi Global’s 2021 IPO. Unfortunately, Didi met an untimely demise on the NYSE due to Beijing’s crackdown on Big Tech and was delisted last year — Shein will be looking to avoid the same fate.
The company has been dogged with claims that the fast fashion company allegedly uses forced labor in China to sell clothes for cheap. An independent coalition, Shut Down Shein, and lawmakers have expressed concern about the company listing in the U.S. until it can prove it complies with the Uyghur Forced Labor Prevention Act.
Are there any other IPOs happening right now?
Rumors of Shein’s IPO might be swirling thanks to a small but mighty pick-up in IPOs on the U.S. markets, which are lined up to kickstart dealmaking activity once more.
Restaurant chain Cava’s IPO was a stellar start for the company, climbing 89% in a day and awarding Cava with a $4.7 billion valuation. The shares debuted for $22 and finished the day at $42 apiece.
Johnson & Johnson’s subsidiary Kenvue also went public, completing the largest IPO since Rivian Automotive listed in the U.S. in 2021. Kenvue now has a valuation of around $47 billion since the market debut.
The biggest fish to fry this year will be Arm’s IPO, which owner Softbanks is looking to achieve between a $60 billion to $70 billion valuation. After much swaying from the British Government, the U.K.-based semiconductor giant decided to list in the U.S.
The bottom line
Shein’s IPO is an exciting one for investors to get a slice of the fast fashion pie. The website has proved hugely successful with consumers, despite the forced labor rumors, but it’s possible Shein is looking to prove its innocence on that front before going ahead with an IPO. Let’s wait and see.
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