Sources: Shein filed for US listing

Chinese fast-fashion company Shein has confidentially filed for a listing in the United States as it seeks to expand its global reach with a long-rumored initial public offering (IPO), sources said. CNBC.

Fast-fashion is a business model adopted by many brands in the fashion industry, characterized by the large-scale production of low-quality, short-lived and low-priced clothes, sometimes inspired by famous collections.

The Chinese retailer was most recently valued at $66 billion and could be set to begin trading in the US market in 2024, according to the sources cited. According to CNBC, it's unclear how much the company is currently worth, but its valuation has been a central point of debate between Shein and the consultants he works with.

A confidential filing of listing documents is common because it allows companies to communicate with the US Securities and Exchange Commission (SEC) and make any necessary adjustments privately. In the coming months, Shein will likely make adjustments to his filings and answer numerous questions from the SEC, CNBC notes. The filing will be made public once the company is ready to move forward with the IPO. At that time, communications with the SEC and any adjustments to its filings will also be published.

Shein has seen a meteoric rise in the last few years, after winning over consumers around the world with its modern designs, very rich product range and very low prices. But Shein has also faced a number of challenges and accusations of using forced labor in its supply chain, violating labor laws, damaging the environment and stealing designs from independent artists.

The company is currently under investigation by the Chinese Communist Party. Meanwhile, a number of lawmakers, including 16 Republican US attorneys general, have called on the SEC to ensure that Shein does not use forced labor in its supply chain before it is allowed to list in the US.

In October, Marcelo Claure, vice president of the Shein Group and former CEO of SoftBank, told CNBC that Shein was cooperating with lawmakers to explain the deal. Claure said there is "no forced labor" in the Shein factories he visited. But the company has repeatedly acknowledged that forced labor has been found in its supply chain and has said it is taking steps to remedy the situation.

As Shein has grown from an obscure Chinese retailer into a Singapore-based global giant, it has remained largely in the shadows, only this year becoming more open in its bid to prepare for a U.S. IPO.

With Chinese CEO Sky Xu still at the helm, Shein named former Bear Stearns investment banker Donald Tang as executive chairman, handling public appearances since earlier this year. It hosted a series of well-publicized pop-up events, sent influencers to its Chinese factories in an ill-received PR campaign, and courted the business press with parties that featured independent designers and others close to the company.

Shein recently acquired about a third of Sparc Group - a joint venture that includes brand management firm Authentic Brands Group and mall owner Simon Property Group. With this acquisition, Shein has made a strong ally in the US.

As part of the deal, Shein partnered with former rival Forever 21, launching a co-branded clothing line. At the same time, Shein hosted pop-up events in Forever 21 stores.

Shein still has a lot to do to win the trust of US regulators, notes CNBC. Beyond the myriad of problems, its CEO remains a mysterious figure who does not give interviews or speak publicly about the company, which is not typical of US-listed firms.

Shein wants Goldman Sachs, JPMorgan Chase & Co. and Morgan Stanley to be the lead underwriters of the offer, according to sources cited by CNBC.

Shein declined to comment on the IPO, as did officials from Goldman Sachs, JPMorgan and Morgan Stanley.