Shein halts IPO plans

Fast-fashion Chinese retailer Shein has postponed its plans to launch an IPO in the United States due to volatile markets because of the recently launched war between Russia and Ukraine. Last month, Shein began looking at listing on the New York Stock Exchange for a second time. The company’s founder was even considering a citizenship change to bypass rules for offshore public offerings in China.

The stock market took a sharp decline due to the Russia/Ukraine conflict. Therefore, investors are hesitant for any new or risky investments after Western countries imposed sanctions on Russia after they invaded Ukraine with armed troops, tanks, and missiles.

Despite that, some believe Shein should proceed with an IPO since it is in a strong financial position. However, Shein doesn’t appear to want to risk its position in a potentially volatile market. The United States is currently Shein’s biggest market. The company’s valuation is estimated to be 50 billion dollars.

Shein was working on its IPO plans two years ago, but postponed then due to tensions between the U.S. and China. The company is considered one of the world’s largest fast-fashion retailers and is popular among Gen-Z.