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How Shein’s US IPO Became Endangered by China Rift, Explained

Investors are watching to see if Shein can break through the impasse — and what it means for Chinese IPOs in the US if they fail.

Shein app. Shutterstock. — Shein’s roots in China played a big role in its initial success, but in some ways they’ve have come back to bite it. (Shutterstock)

Bloomberg

05 March 2024

BoF PROFESSIONAL

US investors are facing the growing risk of losing out on Shein’s potentially huge initial public offering, as the fast-fashion giant with Chinese roots considers holding it in London instead. Dealmakers in New York once reaped huge fees from Chinese companies going public; now they wonder whether the regulatory clouds that set in after Didi Global Inc.’s 2021 US IPO turned into a debacle will ever lift. With the first $1-billion-plus IPO in New York by a Chinese-owned company post-Didi safely in the books as of February, investors are watching to see if Shein can also break through the impasse — and what it means for Chinese IPOs in the US if they fail.

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Shein Considers London IPO Amid US Resistance to Listing

The fast fashion giant is in the early stages of exploring the London option as it has judged it unlikely that the US Securities and Exchange Commission will approve its IPO, the people said, asking not to be identified discussing confidential information.

US Senator Urges SEC to Block Shein IPO Unless China Operating Risk Disclosed

Republican Senator Marco Rubio wrote that Shein’s recent decision to request approval from Beijing for a prospective US IPO “raises serious doubts” about the accuracy of the company’s filings.

Shein Backers Offer to Sell at 30% Discount as IPO Prospects Dim

Shein investors are trying to sell shares in private market deals that value the online fashion giant at as low as $45 billion, reflecting dwindling appetite for a company struggling with intensifying competition and regulatory scrutiny ahead of a long-awaited US debut.

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