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Shein’s IPO could raise billions. Here’s what to know about the secretive Chinese-founded retailer.
Shein, the fast-fashion giant that’s built a following through social media influencers touting a seemingly endless variety of new designs, has filed confidentially for an IPO in the U.S., according to the New York Times and Reuters.
Confidential filings are permitted by the U.S. Securities and Exchange Commission, but if the IPO moves forward, the filing — which would include details about the company’s financial operations, executives and more — would eventually become a public document.
That would allow everyone from potential investors to customers to take a peek inside a company that’s kept much of its operations under wraps. Despite its tight lips, Shein has sparked plenty of controversy inside the U.S., ranging from lawsuits over alleged copyright violations to questions from lawmakers about whether the fast-fashion company relies on forced labor in China.
“An IPO is significant both because of the potential scale of the deal and because it represents a formalization of Shein’s business,” Neil Saunders, a retal analyst and managing director at GlobalData, told CBS MoneyWatch.
He added, “Shein has provoked a lot of interest but not all that much is known about the company; an IPO will shine a spotlight on the business model and financials.”
Shein declined to comment to CBS MoneyWatch on the reported IPO filing, which was filed for a reported 2024 stock sale.
Here’s what to know about Shein and its IPO.
What is Shein?
Shein was founded in China in 2012 by four co-founders, according to its website, although the closely-held e-commerce company shifted its headquarters to Singapore in 2022.
Shein (pronounced “she-in”) has become one of the biggest online-only retailers by selling its clothing and other items at extremely low prices while keeping tabs on clothing trends. The company says it became the “most searched fashion brand in the world’ by 2022.
It’s also relied on aggressive marketing of its clothing to young shoppers on TikTok, Instagram and other social media platforms, with customers unboxing and touting their purchases through the hashtag #SheinHaul.
“Shein is a very disruptive force in fashion and has seen its sales grow rapidly as it has become more popular with consumers around the world, including in the U.S.,” Saunders noted.
Who owns Shein?
One of its co-founders, Chris Xu, continues to run the company and is a major stakeholder, yet little is known about him.
Xu, whose Chinese name is Xu Yangtian and who was described in one lawsuit as “a mysterious tech genius,” is reportedly worth $21 billion due to his 33% stake in the business, according to the Bloomberg Billionaires Index.
Born in China in 1983, Xu studied international trade at Qingdao University and worked at an online marketing company after college, Bloomberg said.
The three other co-founders of Shein — Miao Miao, Gu Xiaoqing and Ren Xiaoqing — are also billionaires due to Shein’s soaring popularity, Bloomberg reported. Miao, Gu and Ren all have stakes of about 8%, valuing them at about $5 billion each, the publication said.
When will Shein’s IPO happen?
The IPO could happen sometime in 2024, Reuters reported.
What is Shein’s projected stock price?
That won’t be known until the IPO is closer at hand and its underwriters — Goldman Sachs, JPMorgan Chase and Morgan Stanley — set the stock price, based partly on demand from investors as well as the company’s financials, such as its profitability and growth prospects.
But Shein is filing for an IPO at a time when demand for public offerings has been muted, Saunders noted.
“A big question is what kind of IPO price Shein can command,” he said. “A lot of recent IPOs have been something of a disappointment due to a lack of investor confidence and more scrutiny over profitability and multiples.”
How much could Shein be valued at in an IPO?
The company’s valuation could be as much as $90 billion in a U.S. initial stock sale, according to Bloomberg News.
That would make Shein more about three times as valuable as retail giant H&M, which has a market capitalization of about $27 billion, according to financial data provider FactSet.
Could Shein’s controversies impact its IPO?
There could be some “political rumblings” as the IPO progresses given that some lawmakers have asked the SEC to audit Shein before allowing it to sell stock to the public, Saunders noted.
“Quite whether the SEC deems this necessary or appropriate remains to be seen,” he noted. “As part of its filing, Shein will need to discuss its supply chain and how the business works, so this will place more scrutiny on the ethical dimensions of the company.”
What will investors learn from its IPO filing?
Once the registration filing is made public, investors will be able to find out more about the company’s operations, including its sales growth, profitability and its management structure, among other topics.
“Investors will want to understand how profitable Shein is,” Saunders said. “This is especially important as online fashion can be a tricky sector to make money from.”
He added, “Shein has been very fast-growing so one of the key questions is how it maintains this pace.”
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Sen. Tammy Duckworth says Pete Hegseth is “flat-out wrong” about women in combat roles
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Sen. Duckworth says Trump defense secretary pick is “flat-out wrong” about women in combat roles
Democratic Sen. Tammy Duckworth said Sunday that Pete Hegseth, President-elect Donald Trump’s pick for defense secretary is “flat-out wrong” in his view that women should not serve in the military in combat roles.
“Our military could not go to war without the women who wear this uniform,” Duckworth said on “Face the Nation with Margaret Brennan.” “And frankly, America’s daughters are just as capable of defending liberty and freedom as her sons.”
Trump tapped Hegseth, a former Fox News host and Army veteran who served in Iraq and Afghanistan as his pick to head the Defense Department earlier this month. The 44-year-old has drawn criticism for his stance on women in combat roles, along with his level of experience.
Duckworth, who in 2004 deployed to Iraq as a Blackhawk helicopter pilot and sustained severe injuries when her helicopter was hit by an RPG, outlined that women who serve in combat roles have met the same standards as men, passing rigorous testing. She said Hegseth’s position “just shows his lack of understanding of where our military is,” while arguing that he’s “inordinately unqualified for the position.”
“Our military could not go to war without the 220,000-plus women who serve in uniform,” Duckworth said. She added that having women in the military “does make us more effective, does make us more lethal.”
Hegseth has also drawn scrutiny amid recently unearthed details about an investigation into an alleged sexual assault in 2017. Hegseth denies the allegation and characterized the incident as a consensual encounter. The Monterey County district attorney’s office declined to file charges as none were “supported by proof beyond a reasonable doubt.” His lawyer has acknowledged that Hegseth paid a confidential financial settlement to the woman out of concern that the allegation would jeopardize his employment.
Duckworth, an Illinois Democrat who serves on the Armed Services and Foreign Relations Committees, said it’s “really troubling” that Trump would nominate someone who “has admitted that he’s paid off a victim who has claimed rape allegations against him.”
“This is not the kind of person you want to lead the Department of Defense,” she added.
The comments come after Trump announced a slew of picks for top posts in his administration in recent days. Meanwhile, one pick — former Rep. Matt Gaetz for attorney general — has already withdrawn his name from consideration after he faced intense scrutiny amid a House Ethics Committee investigation and a tenuous path to Senate confirmation.
While Duckworth acknowledged that she’s glad her Senate Republicans “held the line” on Gaetz and also elected Sen. John Thune as leader over a candidate favored by many in Trump’s orbit, she said she’s “deeply concerned” her Republican colleagues will green light Trump’s nominees.
“From what I’m hearing from my Republican colleagues on everything from defense secretary to other posts, it sounds like they are ready to roll over for Mr. Trump,” Duckworth said.
But Duckworth didn’t rule out supporting some of the nominees herself during the Senate confirmation process, pledged to evaluate each candidate based on their ability to do the job, and their willingness to put the needs of the American people before “a retribution campaign for Mr. Trump.”
Meanwhile, a CBS News poll released on Sunday found that 33% of Americans say Hegseth is a “good choice” for defense secretary, including 64% of Trump voters. But 39% of Americans said they hadn’t heard enough yet about the pick. More broadly, Americans generally say they want Trump to appoint people who’ll speak their minds and who have experience in the field or agency they’ll run.
Sen. Rand Paul, a Kentucky Republican who also appeared on “Face the Nation” on Sunday, said he believes that Hegseth can run the massive Defense Department, despite his lack of experience managing a large organization. Though he did not address Hegseth’s comments about women in combat roles, Paul said he believes the “vast majority of people” support leaders who are picked based on merit, citing Hegseth’s criticism of the Pentagon for what he says has been a move away from merit-based hiring and toward hiring based on “racial characteristics.”
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Israeli strike kills Lebanese soldier as Hezbollah fires at least 185 rockets at Israel
Hezbollah fired at least 185 rockets and other projectiles into Israel on Sunday, wounding seven people in the militant group’s heaviest barrage in several days, in response to deadly Israeli strikes in Beirut while negotiators pressed on with cease-fire efforts to halt the war.
Meanwhile, an Israeli strike on a Lebanese army center killed one soldier and wounded 18 others on the southwestern coastal road between Tyre and Naqoura, Lebanon’s military said. Israel’s military expressed regret and said the strike occurred in an area of combat against Hezbollah, adding that its operations are directed solely against the militants. The strike was under review.
Israeli strikes have killed over 40 Lebanese troops since the start of the war between Israel and Hezbollah, even as Lebanon’s military has largely kept to the sidelines.
Lebanon’s caretaker prime minister, Najib Mikati, condemned it as an assault on U.S.-led cease-fire efforts, calling it a “direct, bloody message rejecting all efforts and ongoing contacts” to end the war.
“(Israel is) again writing in Lebanese blood a brazen rejection of the solution that is being discussed,” a statement from his office read.
The strike occurred in southwestern Lebanon on the coastal road between Tyre and Naqoura, where there has been heavy fighting between Israel and Hezbollah.
Hezbollah began firing rockets, missiles and drones into Israel after Hamas’ Oct. 7, 2023, attack out of the Gaza Strip ignited the war there. Hezbollah has portrayed the attacks as an act of solidarity with the Palestinians and Hamas. Iran supports both armed groups.
Israel has launched retaliatory airstrikes since the rocket fire began, and in September the low-level conflict erupted into all-out war, as Israel launched waves of airstrikes across large parts of Lebanon and killed Hezbollah’s top leader, Hassan Nasrallah, and several of his top commanders.
Hezbollah fired a total of around 160 rockets and other projectiles into Israel on Sunday, some of which were intercepted, the Israeli military said.
Israel’s Magen David Adom rescue service said it was treating two people in the central city of Petah Tikva, a 23-year-old man who was lightly wounded by a blast and a 70-year-old woman suffering from smoke inhalation from a car that caught fire. The first responders said they treated three other people in northern Israel, closer to the border, including a 60-year-old man in serious condition.
It was unclear whether the injuries and damage were caused by the rockets or interceptors.
Israeli airstrikes early Saturday pounded central Beirut, killing at least 20 people and wounding 66, according to Lebanon’s Health Ministry.
Israeli attacks have killed more than 3,500 people in Lebanon, according to Lebanon’s Health Ministry. The fighting has displaced about 1.2 million people, or a quarter of Lebanon’s population.
On the Israeli side, about 90 soldiers and nearly 50 civilians have been killed by bombardments in northern Israel and in battle following Israel’s ground invasion in early October. Around 60,000 Israelis have been displaced from the country’s north.
The Biden administration has spent months trying to broker a cease-fire, and U.S. envoy Amos Hochstein was back in the region last week.
The European Union’s top diplomat called for more pressure on both Israel and Hezbollah to reach a deal, saying one was “pending with a final agreement from the Israeli government.”
Josep Borrell spoke Sunday after meeting with Mikati and Lebanese Parliament Speaker Nabih Berri, a Hezbollah ally who has been mediating with the group.
Borrell said the EU is ready to allocate 200 million euros ($208m) to assist the Lebanese military, which would deploy additional forces to the south.
The emerging agreement would pave the way for the withdrawal of Hezbollah militants and Israeli troops from southern Lebanon below the Litani River in accordance with the U.N. Security Council resolution that ended the 2006 war. Lebanese troops would patrol the area, with the presence of U.N. peacekeepers.
Lebanon’s army reflects the religious diversity of the country and is respected as a national institution, but it does not have the military capability to impose its will on Hezbollah or resist Israel’s invasion.