Shein seeks permission from Chinese authorities to conduct an IPO in the United States – Kommersant

Chinese retailer Shein is trying to get permission from Chinese authorities to conduct an initial public offering (IPO) in the United States, where it has already confidentially filed the necessary documents. The agency reports this Reuters with reference to knowledgeable sources.

The retailer, whose products are sold in more than 150 countries, was valued at $66 billion following a round of financing in May, sources say. A year earlier, the company moved its headquarters from Nanjing to Singapore to present itself as a global, not just a Chinese, retailer. However, Shein has not yet managed to become independent from China. The country has introduced new requirements for Chinese companies that want to list on foreign stock markets. According to these requirements, any company, even those headquartered outside China, must comply with China’s location rules if at least 50% of its revenues, profits, total or net assets are generated or located in China, if representatives of the top management are citizens of the PRC or permanently reside in the PRC, as well as if the main part of the company’s activities is carried out in the PRC. Shein meets all these conditions.

Meanwhile, in the US, the Chinese retailer is also not very welcome. The US Securities and Exchange Commission (SEC) since November, when filed Shein’s IPO documents provide no response. A group of American congressmen called The SEC will block the Chinese company’s IPO until it proves that forced labor is not used in the factories of its nearly 5,400 contractors. Shein said at the time that the company has “zero tolerance” for the use of forced labor and that it requires its suppliers to adhere to a “strict code of conduct that is consistent with key provisions of International Labor Organization conventions.” Shein, as well as the SEC, did not respond to requests from Reuters regarding the development of the situation around the retailer.

Alena Miklashevskaya