Shein has reaffirmed its commitment to pursuing an initial public offering (IPO), despite regulatory hurdles and shifting economic conditions. Executive Chairman Donald Tang, formerly Vice Chairman of Bear Stearns, recently traveled to London to secure investor support for the proposed listing.
Shifting IPO Strategy to the U.K.
While initial reports suggested Shein was considering an IPO in the United States or Canada, political backlash and regulatory scrutiny forced the company to explore alternative markets. During his visit to London, Tang emphasized Shein’s intention to integrate into the local business landscape.
“In London, we want to be a British company. We want to be a British local company … we’re registered here, we’re paying taxes here, we want to be part of a community,” Tang told The Times.
Market Valuation and Economic Challenges
Shein’s valuation has fluctuated significantly in recent years. In 2022, the fast-fashion giant was valued at $102 billion, dropping to $66 billion in 2023. Investors have since advised Tang to lower the company’s valuation to $30 billion ahead of its IPO, signaling caution amid changing market conditions.
The brand’s business model, which relies on ultra-low pricing, could also face challenges from potential U.S. tariffs. Former President Donald Trump has proposed ending the “de minimis” exemption, which currently allows direct-to-consumer packages valued under $800 to enter the U.S. without tariffs. If enacted, this change could increase prices for American shoppers and impact Shein’s growth.
Building Public Trust Despite Controversies
Shein has faced scrutiny over its manufacturing practices and rapid expansion. However, Tang believes an IPO would enhance transparency and strengthen investor and consumer trust.
No official announcement has been made regarding U.K. regulatory approval for the IPO. Stay tuned for further updates as Shein moves forward with its public listing strategy.
