Fast fashion giant Shein has confidentially filed for an IPO in the US, Reuters reported on Monday, citing two sources. The move puts to an end long-running speculation around the China-founded company’s intentions to go public.

Why it matters: A successful listing for the fast-fashion giant would help Shein expand its global reach while diversifying its sources of funding.

Details: Shein has hired Goldman Sachs, JPMorgan Chase, and Morgan Stanley as lead underwriters for the share offering and expects to go public sometime in 2024, according to Reuters.

• The company’s current valuation is uncertain. In a $2 billion funding round in May, Shein was valued at $66 billion, a third less than its $100 billion valuation from a funding round a year earlier.
• Now headquartered in Singapore, the retailer sells everything from skirts to sweaters, typically for around $10 a piece, in more than 150 countries. Shein has actively sought to diversify its supply chain, moving away from reliance on China. The company began manufacturing in Turkey and Brazil this year and is in the process of planning for a factory and warehouse in Mexico.
• Under ongoing regulatory scrutiny in the US, its largest market, Shein faces allegations related to design infringement and the use of forced labor in its factories.
• Shein did not respond to TechNode’s request for comment.

Context: In 2022, eleven years after its founding, Shein recorded $23 billion in revenue and $800 million in net income, according to the Wall Street Journal. A company executive reportedly told investors in July that it had achieved record profitability in the first half of 2023 thanks in large part to strong sales in the US.

• In a bid to further expand its international presence, Shein acquired a one-third stake in Forever 21’s parent company in August, followed by the purchase of fast fashion brand Missguided and all of its intellectual property in October.