Shein denies rumors of IPO in the US, Sino-US relations may be a stumbling block

According to Reuters, a source said Shein may go public in the United States in the second half of this year, but Shein officials denied this statement. At the same time, the Chinese government issued new regulations last month, which may make it more difficult for Shein to go public in the United States.

Reuters quoted three sources as saying that Shein will raise about $2 billion in a new round of financing this month and plans to go public in the United States in the second half of this year. Two other sources revealed that the UAE sovereign fund Mubadala is the main investor in this round of financing, and Tiger Global has become a new investor.

Shein, which cut its valuation to $64 billion in the funding, down a third from a round a year ago, held preliminary talks last month with several investment banks to pick lead bookrunners for the U.S. IPO, according to people familiar with the matter.

In response, Shein said it currently has no plans to go public and declined to comment further. Major investors GA, Mubadala, Tiger and Sequoia China also declined to comment.

Shein had previously attempted to go public in the United States in 2020, but ultimately shelved its listing plans due to unpredictable market conditions amid tensions between China and the United States.

Last month, China introduced new rules on how companies can list overseas, which may greatly slow down the listing of Chinese companies in the United States. Therefore, Shein's IPO plan has been closely watched. Whether it can achieve an IPO in the United States to a certain extent reflects the difficulty of Chinese companies listing in the United States.

Chinese companies raised only about $230 million in U.S. listings last year, according to Refinitiv data, a sharp drop from $12.9 billion in 2021. It is unclear whether Shein plans to formally seek approval from Chinese regulators for its IPO.

In recent years, Shein has used a Singapore company as its de facto holding company, and founder Xu Yangtian has become a permanent resident of Singapore, Reuters reported last year. Sources previously said the moves were designed to allow Shein to bypass seeking Chinese regulatory approval for a listing.

At the same time, Shein has also accelerated its expansion in Europe. According to sources, Shein is building a team in Ireland, starting production in Türkiye, and will open a large factory in Poland.

Editor✎ Ashley/

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