Shein in Talks With NYSE and Nasdaq About IPO

Online fast-fashion retailer Shein is reportedly working with investment banks about a possible public listing.

The Chinese company has held talks with both the New York Stock Exchange and Nasdaq, Reuters reported Tuesday (July 4), citing sources familiar with the matter.

Six sources said Morgan Stanley, JPMorgan Chase and Goldman Sachs are among the banks helping Shein prepare for its initial public offering (IPO).

PYMNTS has contacted Shein for comment but has not yet received a reply.

The news comes days after Shein shot down a media report that it had confidentially submitted its registration for an IPO with the Securities and Exchange Commission (SEC) and that listing could happen before the end of the year. The report cited unnamed sources.

Reached by PYMNTS, a Shein spokesperson said via email: "Shein denies these rumors."

Shein has been considering an IPO for at least three years but has held off from listing due to market volatility and concerns in the U.S. about Chinese accounting practices, according to an earlier Reuters report.

An IPO could make the online retailer the most valuable IPO for a Chinese company in the U.S. since Didi Global, the ride-hailing firm that was valued at $68 billion at its listing two years ago.

As noted here in March, Shein was valued at $64 billion - down from $100 billion - in a funding round that raised $2 billion.

Earlier this week, PYMNTS looked at Shein in its capacity as one of a number of retailers who have been diversifying their offerings by establishing third-party marketplaces or folding third-party brands into their portfolios.

In Shein's case, that means collaborating with smaller-scale U.S. vendors, such as Los Angeles fashion footwear brand Cape Robbin. Shein hopes to encourage its shoppers to explore a wider range of offerings beyond clothing, a strategy further emphasized by the launch of temporary stores, reflecting Shein's commitment to expanding and diversifying its U.S. customer base.

"The marketplace platform makes available a range of additional merchandise and shipping options, and we expect it to result in increased customer engagement and satisfaction," the company said in December.

"Loyalty has been harder to obtain, and the incorporation of third-party brands and marketplaces has played a critical role in addressing that challenge," PYMNTS wrote.

"With the proliferation of eCommerce and the rise of online marketplaces, consumers have access to a vast array of choices. This has intensified competition among brands and retailers, making it harder to retain customer loyalty."