China's fast-fashion retailer Shein files for US IPO - sources
By Kane Wu and Anirban Sen
(Reuters) -China-founded fashion company Shein has confidentially filed to go public in the United States, two sources familiar with the matter told Reuters on Monday.
Goldman Sachs, JPMorgan Chase (NYSE:JPM) and Morgan Stanley have been hired as lead underwriters on the offering, and Shein could go public sometime in 2024, the sources said.
The fast-fashion giant's moves to go public comes at a time when the market for initial public offerings is struggling to rebound after a string of lacklustre stock market debuts in the U.S.
In recent months, there were four major IPOs, and three of them disappointed investors. Shares of German sandal-maker Birkenstock (NYSE:BIRK), grocery delivery app Instacart (NASDAQ:CART) and chip designer Arm Holdings (NASDAQ:ARM) dropped below their IPO prices in the days that followed their debuts, though Arm's shares are now trading above that price.
«It doesn't strike me as the most opportune time for Shein to come public, but if they need capital the markets are open at least we've had a rally off the lows in the last few weeks and investor sentiment has been more positive than it was a few weeks ago,» said Jason Benowitz, senior portfolio manager at CI Roosevelt.
"...when investors can review the financials, I would expect to see pretty strong growth historically… the key question will be if they can kind of maintain the pace or to continue to gain market share going forward," he said.
Shein had started low-profile roadshows for the float in the U.S., said one of the sources, both declining to be identified due to confidentiality restraints.
The retailer's latest move also comes amid tightened scrutiny on the company from U.S. lawmakers.
In August, Republican
Read more on investing.com
