Chinese fast-fashion company Shein seeks US IPO as soon as 2024: report

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Two people hold two Shein bags after entering SHEIN’s first physical store in Madrid, Spain on June 2, 2022.

Cezaro DeLuca | Europa Press | Getty Images

Chinese fast-fashion giant Shein hopes to go public in the United States as soon as 2024, according to a Bloomberg reportwhich cites people familiar with the matter.

Still, it faces environmental, social and governance, or ESG, concerns that could be a barrier to an IPO, according to the report. Previously, Shein had filed for a 2022 IPO in the United States, according to Reuters.

Shein, which has a valuation of $100 billion, has drawn attention to its low-cost product line that has been built on a fast and prolific production line. A probe by Swiss watchdog group Public Eye said some of Shein’s manufacturers subject their workers to unsafe conditions and 75-hour work weeks.

While these concerns have not deterred major investors such as Sequoia Capital China, IDG Capital and Tiger Global Management, recent leadership moves within Shein appear to be focused on improving their ESG appearance in preparation for a public offering, according to Bloomberg.

Shein did not immediately respond to CNBC’s request for comment.

Critics still dispute the short-term wearability of Shein clothing, and the criticism has extended to fast fashion more broadly. A World Bank Report 2019 said the annual number of new garments produced had doubled from 50 billion produced in 2000.

Read the full article on Bloomberg.

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