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Chinese fashion retailer Shein has reportedly put its plan to list in the U.S. on hold amid the Russia-Ukraine crisis, which caused the global capital markets to go volatile.
The company is currently in a strong financial position, and it does not want to put its reputation at stake by pushing ahead with a deal in uncertain markets, Reuters reported on Friday, citing people familiar with the matter.
Shein has not decided yet whether to revive its listing plans again later this year, a source told Reuters.
A company spokesperson said that Shein has no plan for an IPO, the report mentioned.
Citizenship change to bypass China
The Chinese fashion retailer first started preparing for an initial public offering (IPO) in the U.S. about two years back but abandoned the plan due to unpredictable markets amid rising U.S.-China tensions, the
report said.
Last month, Shein decided to revive its plans, and a Reuters report said that the founder of the retailer, Chris Xu, was considering Singapore citizenship as part of the listing process to bypass China’s new" and stricter rules on overseas IPO.
The sources said the listing plan has now been held for the second time.
It’s unclear how much the company was looking to raise from its New York debut.
Fashion e-commerce for Gen-Z Shein was founded in 2008 and has since grown into one of
the world’s largest fashion e-commerce stores targeting overseas consumers.
The Nanjing-based company sells its clothing in the United States, its biggest market, Europe and Asia.
The company, which was valued at about $50 billion in early
2021, manufactures its fast-fashion items in China but doesn’t sell in the
domestic market.
Shein has become one of the world’s largest online fashion
marketplaces for the social media-savvy “Gen Z” generation.
Last week, Reuters reported that the company is also
aggressively expanding its Singapore office.
Picture Credit: The Fanatic