👉 Background: Shein is the fast-fashion giant founded in China in 2008. Its growth has skyrocketed over the past couple of years thanks to TikTok and #sheinhauls. In fact, it's grown to become the world's largest shopping app and is adding more than 2,000 pieces of clothing to its app each day.

👉 What happened: In April 2022, Shein raised capital at a $100 billion valuation. In January 2023, it raised capital at a $64 billion valuation. And now, it plans to IPO at a valuation of $90 billion.

👉 What else: But there is concern that Shein’s many many controversies may just hinder its goal for a smooth IPO in the US.

What's the key learning?

💡Previous controversies can cast a shadow on potential public listings. And investors are looking for companies that provide transparency and certainty right now.

💡Investors may be hesitant to invest in Shein because of its previous and current controversies: things like trademark infringements, poor environmental practices, and allegations of mistreatment of staff.

💡There have been some controversial companies that listed on the stock exchange before, which didn't work out so well:

• WeWork had its controversies before it came onto the Nasdaq - and now it's bankrupt.
• China-based coffee chain Luckin Coffee had allegations of financial fraud before listing on the Nasdaq. Then, it was forced to delist after it was revealed that they were inflating their sales data.