Controversial Chinese-based fast fashion company Shein quietly filed for an IPO earlier this month in London, valued at around $63 billion according to several outlets, including the Wall Street Journal and CNBC.
The discussions are reportedly “private” and noted that the retailer would still prefer an IPO in the U.S. but due to controversy and backlash surrounding its questionable labor practices by American lawmakers, the notion seems unlikely.
Shein originally tried to file for an IPO in the U.S. in November 2023 (at around a $90 billion valuation) and failed. It’s noted that though the company filed for the IPO in London, it does not mean the company will get it.
Shein is headquartered in Singapore, where it’s been since 2021, though most of its operations, including factories, remain in China. To file for an IPO in the U.S., Shein needs permission from the Chinese government.
Last year, the company’s sales surpassed both Zara and H&M with $32.2 billion in sales, per The Verge.
Last summer, the fast-fashion company was sued by three fashion designers for copyright infringement, which alleged that the company was making exact replicas of their designs.
“It is incredibly disheartening, insulting, and downright evil to profit off of artists without their knowledge or permission,” the July 2023 lawsuit stated.
Another lawsuit in April 2024 alleges that Shein has been stealing designs and using AI technology to steal artwork from designers and playing it off as its own.
Related: Chinese Fashion Brand Shein To Re-Enter Indian Market: Report
In an earlier statement to Entrepreneur, Shein denied the allegations of theft and said the company plans to fight back against the lawsuits.
“Shein takes all claims of infringement seriously, and we take swift action when complaints are raised by valid IP rights holders,” a spokesperson for the brand told Entrepreneur last summer. “We will vigorously defend ourselves against this lawsuit and any claims that are without merit.”
Per Reuters, Shein was valued at slightly more at $66 billion in a fundraising round last month.