Saturday, June 3, 2023

Sheen raises $2,000 million, but drops its valuation by a third

Sheen gets muscle. The Chinese ultralow-cost fashion giant has raised $2 billion in its latest round of funding, slashing its valuation by a third, pushing it away from the $100 billion milestone that is set to hit 2022, The Wall Street reported. had reached its final round of funding. Journal.

Notably, the online retailer has reduced its valuation to $66 billion. Sheen had already planned to reduce its valuation and was looking to raise between $3 billion and $1.5 billion, which would have brought its valuation down to $64 billion.

Shein’s turnover in 2022 is expected to be $22.7 billion in 2022, more than H&M in the same year, according to data published by the Financial Times, which also said the company was looking for investors, even if it meant valuations. fall in

By 2025, the company aims to more than double its turnover to $60,000 million, which would mean surpassing the current turnover of Inditex and H&M combined.

Sheen has reduced its valuation to $ 66,000 million

The Sovereign Wealth Fund of the United Arab Emirates Mubadala is one of the main investors in the round, along with other investment funds such as General Athletic or Sequoia China, which are already shareholders of the company.

By the end of 2023, the company hopes to go public on the New York Stock Exchange and at the beginning of the year was in preliminary talks with several investment banks to find a bookrunner. The group tried to leapfrog into the stock market in 2020 in the hands of Bank of America, Goldman Sachs and JP Morgan, but the plans were ultimately crippled by uncertainty and rising tensions between China and the United States.

If successful this time around, Sheen would be the biggest IPO of the year, although the company faces some resistance in the United States. A US congressional committee has asked securities regulators to ask Sheen to prove it does not use forced labor before launching an IPO.

The country’s lower house has focused the Chinese net player, which they say may violate the Uighur Forced Labor Protection Act (UFLPA) by using cotton from farms where Uighurs are subjected to forced labor. goes.

In addition to the United States, Sheen is consolidating its operations in Europe. The company has opened an office in Dublin, which will serve as the headquarters for the Europe, Middle East and Africa (EMA) regions and will employ thirty people. In addition, it has started manufacturing in Turkey and is preparing to open a warehouse in Poland, according to Reuters.

Nation World News Desk
Nation World News Desk
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