Top line
Shein, the Chinese fast fashion giant, reportedly filed confidential documents on Monday to go public in the US.
Companies are reportedly planning an IPO in 2024.Getty Images for SKIMS
Important facts
Despite the last private capital raising with a reported valuation of $66 billion, Shein is seeking a valuation of $80 billion to $90 billion, according to Bloomberg, and aims to become one of the largest IPOs of all time when the company begins trading in New York as early as next year (Shein founder Sky Xu has a net worth of 11.2 billion US dollars).
Social media service Reddit (most recently valued at $10 billion according to PitchBook) and billionaire Kim Kardashian, a clothing brand Flies over ($4 billion) is a step behind Shein as Reddit is in talks to go public as early as next quarter and Skims is considering an IPO as early as next year, Bloomberg reported Monday.
Cloud-based data protection company category (last valued at $4 billion) could begin trading as early as next quarter, according to Bloomberg.
Reports earlier this month suggested as much StarlinkThe satellite internet division of the $150 billion private company SpaceX, could go public in 2024, although SpaceX CEO Elon Musk, the world’s richest person, dismissed the reports as “false.”
Other billion-dollar private companies are rumored to be on the verge of going public Financial technology companies stripes (most recently valued at $50 billion), chimes ($25 billion) and Klarna ($6.7 billion) and an artificial intelligence-based data analysis service Datastones (most recently valued at $43 billion), although reports have yet to peg any of these companies for a 2024 debut.
Cons
The upcoming IPOs will take place in a fairly cool market for baby-faced stocks. Shares of this year’s five biggest IPOs – British chip designer Arm, marketing firm Klaviyo, grocery delivery service Instacart, German sandal retailer Birkenstock and Johnson & Johnson spinoff Kenvue – have fallen an average of 2% below their initial listing prices.
Crucial quote
“We look at the companies that are going public, look at how their IPOs are going and of course monitor the markets.” Billionaire Databricks CEO Ali Ghodsi told Forbes in September. Ghodsi added that high interest rates, which typically place a large burden on startups that rely on loans, have also led to “caution” among companies seeking an IPO.
Important background
After a record increase in 2020 and 2021, driven in part by the proliferation of reverse mergers, IPOs slowed dramatically in 2022, reaching pre-Great Recession lows. The go-public market has picked up again in 2023, albeit slowly. Domestic IPOs raised $18.6 billion in the first three quarters of 2023, a dramatic increase from $7.2 billion in the same period last year, but still well below the 155, according to EY data $.8 billion generated in all of 2021.
further reading
Follow me up Twitter. Send me a sure tip.
I’m a New Jersey-based senior reporter in our newsroom. In 2021, I graduated from Duke University, where I studied economics and worked as a sports editor for The Chronicle, Duke’s student newspaper. Send tips to [email protected].
Read moreRead less
Comments are closed.