In April 2022, Chinese fast-fashion retailer Shein was valued at up to $100bn and positioned as the largest apparel retailer in the US by sales. Pandemic lockdowns and social media hype from "Shein hauls" had drawn young consumers to its cheap, trendy clothing. However, after four years, two false starts, and billions in lost paper value, the IPO process is only now nearing conclusion.

Shein is limping towards a listing in the US at a quarter of its peak valuation, seeking to raise $1.7bn to $1.8bn for a market cap of $25.7bn to $26.8bn. The company faces trade investigations in the EU and UK, while a tax loophole advantageous to its business has all but closed. Retailers across the US and UK were in uproar over perceived unfair competition from Chinese fast fashion.

UK officials were readying measures to end de minimis tax exemptions on packages under $800 in value, which Shein used to avoid duties on shipments. Similar moves followed or are under way in the US and EU. Regulators and politicians were picking apart the company's business model, raising questions over labour practices and sustainability in its supply chains.

There was particular concern about potential links to cotton produced in China's Xinjiang region, where the UN human rights chief has alleged extensive detention and forced labour practices. Shein moved its domicile to the Cayman Islands in 2022 and sought an overseas listing to cement its reputation as a global fashion heavyweight and tap western capital. It hired a flamboyant former Bear Stearns investment banker to lead the effort.

The company sought to allay concerns by "de-Chinafying" its image, remarks that drew criticism. Meanwhile, Shein said it has a "zero-tolerance policy" on forced labour.