Chinese fast-fashion company Shein seeks U.S. IPO as soon as 2024: Report
Two people hold two Shein bags immediately after moving into SHEIN’s initially bodily shop in Madrid, Spain, June 2, 2022.
Cezaro De Luca | Europa Press | Getty Photos
Chinese quickly-fashion huge Shein hopes to do an first general public supplying in the United States as shortly as 2024, according to a report from Bloomberg, which cited people today acquainted with the make a difference.
Nonetheless it faces environmental, social and governance, or ESG, considerations that could be an obstacle to an IPO, in accordance to the report. Earlier, Shein had sought a 2022 IPO in the U.S., in accordance to Reuters.
Shein, which has a $100 billion valuation, has drawn scrutiny for its low-priced product or service line that has been built on a speedy and prolific manufacturing chain. A probe by Swiss watchdog group Community Eye stated some of Shein’s suppliers have been subjecting staff members to unsafe disorders and 75-hour workweeks.
Although these problems have not dissuaded massive investors this kind of as Sequoia Cash China, IDG Funds, and Tiger World wide Administration, recent executive moves within Shein look to concentration on improving upon their ESG overall look in planning for a community presenting, in accordance to Bloomberg.
Shein did not promptly react to CNBC’s ask for for comment.
Critics nevertheless choose challenge with Shein garments limited-phrase wearability, and the criticism has spread to quick-manner more broadly. A 2019 Entire world Bank report said that the yearly range of new garments created experienced doubled from the 50 billion generated in 2000.
