Chinese fast fashion company Shein plans US IPO as early as 2024: report
Two people hold two Shein bags after entering the first physical SHEIN store in Madrid, Spain on June 2, 2022.
Cesaro De Luca | Europe Press | Getty Images
Chinese fast fashion giant Shein hopes to launch an initial public offering in the US as early as 2024. report from Bloombergwhich referred to people familiar with the matter.
However, according to the report, the company is facing environmental, social and governance issues, or ESG, that could be a barrier to an IPO. Previously, Shein was trying to get a U.S. IPO in 2022. according to Reuters.
Shein, which is valued at $100 billion, has drawn a lot of attention for its low cost product line built around a fast and productive manufacturing chain. Probe The Swiss watchdog group Public Eye said some of Shein’s manufacturers are exposing employees to hazardous conditions and a 75-hour work week.
While these concerns have not dissuaded major investors such as Sequoia Capital China, IDG Capital and Tiger Global Management, recent management moves at Shein appear to be aimed at improving ESG’s appearance in preparation for its public offering, according to Bloomberg.
Shein did not immediately respond to a CNBC request for comment.
Critics still disagree on the short-term suitability of Shein clothing, and criticism has extended to fast fashion more broadly. BUT World Bank Report 2019 stated that the annual amount of new clothing produced has doubled from the 50 billion produced in 2000.