Shein revisits plan for New York IPO
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The company previously began a listing process in 2020, but abandoned its plans amid market uncertainty and US-China trade tensions.
According to Reuters Shein founder Chris Xu is contemplating acquiring Singapore citizenship to bypass China’s tougher rules on overseas listings. The change in citizenship, if applied for and successful, would ease the path to an offshore IPO, the news outlet said.
The United States is the largest market for Shein, where its colossal fashion offer and frequent new product listings of over 2,000 items per week have garnered a loyal fanbase.
CSRC’s proposed rules said an overseas listing may be terminated if authorities deemed it a threat to national security. Domestic companies need to comply with relevant provisions in the areas of foreign investment, cybersecurity and data security, as stated in a draft released in December 2021.
Shein is currently valued between 30 and 50 billion dollars, depending on sources, having had a turnover of 10 billion dollars in revenue in the pandemic year of 2020. The company ships to 150 countries and territories.