After several rumors, Shein, a Chinese fast fashion company, may have "secretly handed over" in the United States. On November 27, local time, foreign media reported that Shein has secretly applied for listing in the United States, which may become one of the largest initial public offerings (IPOs) in recent years, or will be traded on the public market as early as 2024.
At the moment, it is unclear what Shein's valuation is. But in the latest round of G+ financing in 2023, SHEIN raised $2 billion and was valued at $66 billion. A year ago, Shein's valuation reached $100 billion.
The Paper reporter said on November 28 that SHEIN has not yet responded to the matter.
Is shein a Chinese enterprise.
For most domestic Internet practitioners, SHEIN is a relatively unfamiliar company. It was not until 2020 that it attracted the attention of the outside world after it got a valuation of more than $15 billion in Series E financing.
According to public information, the predecessor of SHEIN was Nanjing Dianwei Information Technology, which was founded in 2008, and operated cross-border wedding e-commerce in the early days. In 2012, it transformed into a cross-border ** and adopted an independent station model. After changing its name to SHEIN in 2015, it has entered the fast lane of development by relying on the "small single quick return" model.
However, the reporter's inquiry found that SHEIN's official website shows that SHEIN's headquarters is located in Singapore. The main company of SHEIN Group, Guangzhou Shein International Import & Export***, as well as trademarks such as "SHEIN" and "Shein E-commerce", have been established by a Singapore-based company, RoadgetBusinessPteltd. Tianyancha data shows that the company's founder Xu Yangtian has worked in 10 companies in China, but 9 have been cancelled, and only 1 Beijing Xishang Information Technology has a registered capital of only 50,000 yuan.
In this regard, there is a ** interpretation that Xu Yangtian and SHEIN hope to bypass China's overseas IPO regulations.
Regarding the fact that the headquarters is located in Singapore, SHEIN once responded: "We are a cross-border e-commerce company, exporting to more than 150 countries and regions around the world, in order to better promote local business development, facilitate service users, and meet local regulatory requirements, we are a multi-center operation setup, and the positioning and functions of each center have not changed." China is an important hub for us, and with the goal of localization, we also have centers in each of our core markets, such as the United States, Singapore, etc. Hiring across the globe is normal. We will continue to meet the needs of global users, serve the Chinese industry and global consumers. ”
In this regard, some analysts believe that although SHEIN has enjoyed the huge demographic dividend of China and the industrial dividend of the garment industry cluster in terms of business, and has also received the market dividend of the vast clothing market and the prevalence of consumerism in European and American countries, such SHEIN is also like a sandwich biscuit, which is easy to be affected by changes in the international environment.
In addition, in February this year, the China Securities Regulatory Commission issued the "Trial Measures for the Administration of Overseas Issuance** and Listing of Domestic Enterprises", which clearly states that if an issuer makes an overseas initial public offering or listing, it shall file with the China Securities Regulatory Commission within 3 working days after submitting the application documents for issuance and listing overseas. However, up to now, on the official website of the China Securities Regulatory Commission, there has been no filing announcement and other review information for SHEIN's overseas issuance and listing.
It has aroused the attention of the US side.
According to public information, SHEIN has completed 9 rounds of financing in the past 10 years. Among them, in 2022, it received a joint investment of US$1 billion from Tiger Global**, Sequoia China, General Atlantic Investment Group, Boyu Capital, etc., which promoted SHEIN's valuation to US$100 billion, making it the third most valuable startup in the world.
It is precisely because of the presence of these overseas capitals that the market believes that SHEIN may be more inclined to choose overseas as the first choice for listing.
It is reported that in order to gain a foothold in the U.S. market, which is the largest market, SHEIN has also been adjusting its leadership. In November, foreign media reported that SHEIN hired Frances Townsen, the former chief compliance officer of Activision Blizzard, as a senior consultant for a six-month contract, and "poached" TikTok U.S. logistics executives to manage logistics and fulfillment operations.
But along the way, Shein has also faced a series of challenges, including a series of lawsuits alleging copyright infringement. For example, it is reported that on July 25, 2023, Swedish fashion retailer H&M filed a lawsuit against SHEIN in Hong Kong, claiming that it "infringed on design in multiple cases", and SHEIN's entity in Hong Kong, China, has been named as a defendant in at least 50 federal lawsuits in the United States for alleged trademark or copyright infringement in the past three years.
Coupled with the major changes in the global economic and trade environment in recent years, in fact, SHEIN's road to listing is not as smooth as imagined. According to reports, on May 1 this year, more than 20 U.S. lawmakers jointly called on the U.S. ** Exchange Commission to stop SHEIN's IPO. In August this year, shortly after SHEIN announced that it was preparing to go public in the United States, the attorneys general of 16 US states jointly sent a letter to the US ** Exchange Commission (SEC), requesting a review of SHEIN's ** chain. Earlier, the United States** had launched an independent investigation into the issue of import tariffs on SHEIN small packages.
Synthesized from surging news, late finance, etc.