Shein took less than a decade to emerge from relative obscurity as a dominant fast-fashion juggernaut and favorite online shopping destination for Gen Z. Still, the company has become just as famous for its controversies as for the trendy, super-cheap clothing it churns out to TikTokers everywhere. The e-commerce giant has quietly filed confidentially for an initial public offering in the United States, which would be the biggest in retail history by a Chinese company and could set a record valuation of more than $100 billion.
The Shein IPO filing is not expected to happen shortly but is a step toward a possible listing. It would allow everyone, from investors to customers, to get a look inside the highly secretive business. The company has sparked controversy over everything from copyright violations to accusations that it relies on forced labor in China. “An IPO is going to open up a lot of eyes to see what Shein does,” Neil Saunders, managing director of GlobalData Retail, told CBS MoneyWatch.
Investors have poured cash into Shein, valuing the firm over $66 billion. Sources who were close to the matter said Shein has tapped Goldman Sachs, JPMorgan, and Morgan Stanley as the lead underwriters on the potential listing. The sources asked to remain anonymous because they were not authorized to speak publicly.
A Shein spokesman declined to comment on the report. The company is expected to file publicly within a few months, although listing the shares on the stock market might take longer. In the meantime, Shein is working to address a growing number of concerns about its business practices in the U.S., one of the most important markets for any e-commerce company.
Lawmakers have launched a wide-ranging probe of Shein and its fellow Chinese e-commerce giants, including Alibaba, which recently agreed to changes after being accused of shady business dealings and data privacy issues. On Thursday, a House panel led by Reps. Cathy McMorris Rodgers and Gus Bilirakis alleged that Shein and Temu use trade loopholes to circumvent U.S. tariffs and import duties.
The companies also are facing scrutiny over their supply chains, with Republican attorneys general from 16 states accusing Shein of using forced labor and violating consumer protection laws. Shein has responded that it does not tolerate such practices and is taking steps to improve its transparency in the factories where its clothes are made.
As part of its preparation for a possible IPO, Shein has increased its lobbying and public relations spending this year to try to win over lawmakers and the media. It has held a series of pop-up events, sent influencers to its factories in China, and hosted splashy parties with independent designers as guests. It has also hired former Bear Stearns investment banker Donald Tang as its executive chair and public face. But Shein still has a long road ahead to build trust with regulators and the public.
