The IPO (Initial Public Offering) market has always been interesting to a large number of retail and institutional investors. There is one big reason - profitability.
However, the activity has come to a standstill due to heightened volatility in a rising interest rate environment. One of the most notable projects this year might be Shein stock IPO.
In this article we will discuss the key details of the Shein IPO: the history of the company, when is the Shein IPO date, Shein IPO price and everything you should know to make a decision whether to invest in it or not.
Keep reading to find out key info such as, ‘is Shein publicly traded?’, and the potential Shein IPO 2023.
Shein History
Shein is a Chinese fast-fashion e-commerce company founded in 2008 by entrepreneur Chris Xu. Originally named ZZKKO, the company rebranded as Shein in 2015 and quickly became a fully integrated retailer, offering clothing, shoes, accessories, cosmetics, and more.
Despite initially functioning as a dropshipping firm, Shein gradually established its supply chain, invested in designers and prototype makers, and expanded its reach to numerous countries across the world. Its popularity skyrocketed during the COVID-19 pandemic, making it the world's largest online-only fashion firm, with over $10 billion in revenue.
Shein's success can be attributed to its ability to quickly design and produce affordable clothes using big data and rapid Chinese manufacturing. The company caters primarily to Gen Z consumers, with a strong presence on social media platforms like TikTok, Instagram, and Facebook. Its marketing strategy includes collaborating with fashion bloggers, influencers, and celebrities, offering giveaways, and advertising viral items.
In 2022, Shein raised $1-2 billion in private funding, claimed 28% of the US fast fashion market, and was valued at $100 billion. The company continued to expand, establishing distribution centers across the United States and opening a new corporate office and distribution center in Markham, Ontario, as its main hub in Canada.
As of May 2023, Shein is reportedly in informal discussions with tech giants Amazon and Google about a potential investment, and the company is expected to debut on the New York Stock Exchange in the future. However, due to economy slowdown, Shein IPO has been postponed. So now it’s about time to ask When is Shein going public?
Shein’s Public Listing Key Data and IPO Date
Shein IPO Date: TBA
Ticker: N/A
Exchange: NYSE
IPO stock price: N/A
Valuation at IPO: $64 billion (estimated)
Market cap: N/A
CEO: Chris Xu
Category: Fashion Retail
Shein is planning to go public with an initial public offering (IPO) in 2023 after reportedly raising around $2 billion in a new funding round in March. The Shein stock IPO date might fall for the second half of the year, according to three sources with knowledge of the matter. The company has not yet officially confirmed the IPO, but reports suggest that it is in discussions with investment banks. However, it’s past valuation of around $100 billion in 2022 has been cut to the valuation to $64 billion in fundraising in the spring 2023.
The IPO is expected to generate significant interest from investors, who are eager to capitalize on the growing popularity of fast fashion. The United Arab Emirates' sovereign wealth fund Mubadala is a major investor in the new round round, as are existing investors, private equity firm General Atlantic (GA) and venture capital group Sequoia Capital China. Tiger Global Management became a new investor.
If Shein does go public, it would be one of the largest IPOs in history, rivaling the likes of Facebook, Alibaba, and Uber. The company has grown rapidly in recent years, thanks in part to its savvy use of social media and influencer marketing. Shein has also benefited from the shift to online shopping, which has accelerated during the COVID-19 pandemic.
So What About Investing Now?
While Shein has faced criticism for its fast fashion practices and alleged labor violations, its popularity and success show no signs of slowing down. The upcoming Shein IPO will raise many controversies.
On the one hand, Shein may face scrutiny from investors who are increasingly focused on environmental, social, and governance (ESG) issues. Swiss watchdog group Public Eye found that some of Shein's manufacturers subjected employees to hazardous conditions and 75-hour workweeks. Shein has made recent executive changes to address ESG concerns ahead of its IPO. Critics also take issue with Shein's clothing's short lifespan, a common issue within the fast-fashion industry.
Additionally, a Bloomberg report in 2022 revealed that some of the cotton used in Shein's garments came from China's Xinjiang region, where the government has been accused of human rights violations against Uyghurs, a predominantly Muslim ethnic group. Despite allegations of forced labor and internment, Beijing has denied any wrongdoing.
The company will need to address these concerns if it wants to maintain its reputation and appeal to socially conscious investors.
On the other hand, the global trend for fast fashion is still growing: the annual production of new garments has doubled from 50 billion in 2000, according to a 2019 World Bank report. In 2022, Shein generated US$24 billion in revenue, a total almost as large as established retailers Zara and H&M.
Shein has several competitive advantages that have contributed to its success in the fashion industry.
- One of the key advantages is its highly efficient supply chain, which enables the company to quickly respond to fashion trends and bring new products to market faster than many competitors.
- Shein is also known for its low prices, which are achieved through direct sourcing from manufacturers and cutting out middlemen. This allows the company to offer products at prices that are significantly lower than many other fashion retailers.
- Additionally, Shein has a large and active social media presence, with millions of followers on platforms such as Instagram and TikTok. This has helped the company to build a loyal customer base and increase brand awareness.
- Finally, Shein has a strong focus on technology, using data analytics and artificial intelligence to optimize its operations and personalize the customer experience.
In conclusion, Shein's IPO is one to watch in the coming years. It has the potential to shake up the fashion industry and attract significant investment, but it will also face challenges as it navigates the growing concern over ESG issues.
FAQ
Is Shein a public company?
As of May 2023, SHEIN is not yet a public company. However, it has been reported that the company is planning a U.S. listing in the second half of this year, and has been in talks with several investment banks to pick lead bookrunners for an IPO.
How much is Shein worth?
As of March 2022, Shein was valued at around $100 billion after a funding round, according to various reports. But the company has cut its valuation to $64 billion in spring fundraising.
Who owns Shein?
The ownership structure of Shein is not publicly available, and the company has not disclosed a list of its shareholders. However, it is known that Shein was founded by Chris Xu in 2008 and is headquartered in China. And some of the investors include IDG Capital, Sequoia Capital China, Tiger Global Management, Greenwoods Asset Management, and others
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