Shein Plans Confidential U.S. IPO, Anticipating Valuation of up to $90 Billion

Shein is preparing for a confidential U.S. IPO, after securing $2 billion in funding at a $66 billion valuation. The company's IPO aspirations suggest a potential valuation surge to $90 billion, following a notable peak of $100 billion in April 2022.

Filing for US IPO

Singapore-based fashion powerhouse Shein is reportedly gearing up for a confidential U.S. IPO, as reported by TechCrunch. Having previously secured $2 billion in funding at a $66 billion valuation, Shein's IPO plans suggest a potential valuation soaring to $90 billion, following a remarkable valuation peak of $100 billion in April 2022.

Known for disrupting the traditional fashion landscape dominated by Zara and H&M, Shein's unique approach involves leveraging data analytics to forecast consumer demand and maintain low inventory costs through small-batch production.

Despite earning acclaim for its innovative e-commerce model, Shein faces obstacles such as copyright disputes, environmental criticisms, and the emergence of competition from Temu, an online marketplace by China's PDD.

Major investors, including Abu Dhabi's Mubadala, Sequoia China, and General Atlantic, have played a pivotal role in supporting Shein. Their backing has been instrumental in propelling the company to the forefront of the fast-fashion industry and has ultimately prompted Shein to initiate the process of filing for an IPO.

The backing from these influential investors underscores Shein's strategic position and the confidence placed in its potential for growth and success in the global market.

Boosting Revenue to $58.5 Billion by 2025

While facing a valuation decrease from $100 billion to $64 billion, Financial Times reported a recent presentation revealed Shein's ambitious goal to boost revenues from $22.7 billion in the previous year to an impressive $58.5 billion by 2025.

This upcoming filing provides a glimmer of hope for bankers, signaling that planned offerings in 2024 could inject much-needed vitality into the IPO market after a challenging two-year period.

Established by Chinese billionaire Sky Xu, also recognized as Chris Xu or Xu Yangtian, Shein has evolved in the last ten years from a swiftly expanding enterprise in Asia's largest economy to a worldwide business with a strategic emphasis on global expansion.

The U.S. market has emerged as its primary market, featuring a robust marketing team of over 500 professionals, a warehouse workforce of 1,400 in Indiana, and a network of approximately 1,800 collaborations with designers and artists.

Recent market activities have featured the long-awaited $5 billion IPO of chip designer Arm and fashion shoemaker Birkenstock's successful $1.5 billion fundraising.

The New York Times reported that Arm is currently holding steady above its float price, aligning closely with broader market trends, whereas Birkenstock has experienced a slight dip of around 10 percent.

As of the end of the previous month, only $19 billion had been raised in the U.S. this year, as reported by Dealogic. Although this marks a doubling of the entire amount raised in 2022, it falls significantly short of the $154 billion achieved during the peak of the 2021 IPO boom.