NEW YORK: Shein, the Chinese online fashion giant that has taken the world by storm with its ultra-fast and ultra-cheap clothing, is preparing to go public in the United States, as it also seeks to expand its offline presence through a partnership with Forever 21.

Shein has reportedly filed for an initial public offering (IPO) in the US, which could be one of the most valuable listings by a China-based company in New York.

Shein has hired Goldman Sachs, JPMorgan Chase and Morgan Stanley as lead underwriters for the IPO, which could take place some time in 2024.

The size of the deal and the valuation at IPO have not been determined yet, but Bloomberg reported earlier this month that Shein was targeting up to $90 billion in the float. Shein also started low-profile roadshows for the IPO in the US.

According to Reuters: “It doesn’t strike me as the most opportune time for Shein to come public, but if they need capital the markets are open … and investor sentiment has been more positive than it was a few weeks ago,” said Jason Benowitz, senior portfolio manager at CI Roosevelt.

“When investors can review the financials, I would expect to see pretty strong growth historically … the key question will be if they can kind of maintain the pace or to continue to gain market share going forward,” he said.

Shein’s IPO plans come amid a challenging market for new listings, as investors have become more cautious about the prospects of some high-profile companies that have gone public recently. Some of the recent IPOs that have disappointed include Peloton, Airbnb, DoorDash and Robinhood.

Shein, which was founded in 2008 and is based in Nanjing, China, has grown rapidly in recent years, becoming one of the most popular online fashion retailers in the world, especially among young consumers.

The company offers thousands of new styles every week, with prices as low as $3 for a dress or $1 for a pair of earrings. Shein claims to have more than 100 million active users in over 220 countries and regions, and to have shipped more than 1 billion orders globally.

However, Shein’s meteoric rise has also attracted criticism and controversy, as the company has been accused of various ethical and legal issues, such as exploiting workers, harming the environment, copying designs from independent artists and brands, and selling products that are culturally insensitive or inappropriate.

Shein has also faced scrutiny from regulators and lawmakers in some markets, such as India, where it was banned for a few months last year over data privacy concerns.

In an attempt to address some of these challenges and to improve its image and reputation, Shein has taken several steps, such as launching a social responsibility program, donating to various causes, collaborating with celebrities and influencers, and hosting live-streaming events and fashion shows.

The company has also been expanding its product categories, offering not only clothing, but also accessories, beauty, home, pets and kids products.

One of the most significant moves that Shein has made recently is to partner with Forever 21, the American fast-fashion chain that was once a dominant force in the industry, but has struggled in recent years and filed for bankruptcy twice.

In August, Shein announced that it had acquired a 33% stake in SPARC Group, the fashion conglomerate that owns Forever 21, among other brands. In return, SPARC Group would take a minority stake in Shein.

The deal between Shein and Forever 21 is expected to benefit both parties, as they can leverage each other’s strengths and resources. For Shein, the partnership will give it access to Forever 21’s network of physical stores, which could help it increase its brand awareness and customer loyalty, as well as diversify its revenue streams.

For Forever 21, the partnership will give it access to Shein’s online platform, which could help it boost its sales and reach new customers, especially in emerging markets.

The deal also signals Shein’s ambition to become a global leader in the fashion industry, not only online, but also offline. While Shein has been successful in attracting customers with its low prices and fast delivery, it still faces competition from other online players, such as Zara, H&M, ASOS and Boohoo, as well as from traditional retailers, such as Gap, Uniqlo and Zalando.

Analysts believe by partnering with Forever 21, Shein hopes to gain an edge over its rivals and to offer a more comprehensive and immersive shopping experience to its customers.

However, Shein’s expansion plans also come with risks and challenges, as the company will have to navigate the complex and dynamic fashion market, which is constantly changing and evolving. Shein will also have to deal with the regulatory and political uncertainties that affect cross-border businesses, especially in the current tense environment between China and the US.

Moreover, Shein will have to address the growing concerns and demands from consumers, activists and authorities regarding the social and environmental impacts of its business model, which relies on mass production and consumption of cheap and disposable clothing.

Analysts say Shein’s IPO and its deal with Forever 21 are likely to be closely watched by the industry and the public, as they will reveal more about the company’s strategy, performance and vision for the future. Shein, which has been notoriously secretive and elusive in the past, will have to open up and disclose more information about its operations, finances and governance, as well as its plans to address its critics and challenges. Shein’s future in the US and the world will depend on its ability to balance its growth and profitability with its responsibility and sustainability.