Chinese fast fashion giant Shein is expanding its Singapore office after making the Singapore company its de facto holding company. report from Reuters.
Quoting “those with knowledge of the matter,” Reuters Shein founder and CEO Chris Xu has also become a permanent resident of the city-state, according to an agency report, according to an analysis of applications by the online fast-fashion retailer.
Shein deregistered its main business, Nanjing Top Plus Information Technology Co Ltd, last year, according to filings by the Chinese company.
This development reinforces earlier rumors that suggested Shein was busy reviving the plan. New York list of the yearXu is considering changing its citizenship to circumvent harsh new Chinese rules for offshore IPOs.
Roadget Business Pte, registered in Singapore, lists Mr. Xu and three others as representatives, was established in 2019 and will become the legal entity to operate Mr. Shein’s global website from late 2021 onwards. This is shown in Singapore’s filings.
Roadget now also owns the Shein trademark which was transferred from Guangzhou Shein International Import & Export Co Ltd and Zoetop Business Co, Hong Kong. moreover, Shein’s LinkedIn The company profile page shows Singapore as the headquarters.
Shein and the $50 billion IPO
It’s not yet known how much the company plans to raise from its New York debut, but over the summer I reported on Shein’s preparations. $50 billion IPO potential We plan to submit a listing prospectus soon.
At the time, a Shein spokesperson flatly denied rumors emanating from around the Chinese investment community Grapevine, but if the IPO were to go through, regulators would step in to increase oversight of such listings. The IPO would be the first major stock deal in the US by a Chinese company since then. July last year.
Shein began preparing for a potential U.S. IPO about two years ago, but is understood to have froze plans as markets became volatile amid rising trade tensions between the U.S. and China. ing.
The securities regulator’s draft rules for offshore listings are designed to target companies where a majority of senior managers are Chinese nationals or reside in China, or whose main business activities are conducted in China. It has been.
It is unclear when Mr. Xu obtained his permanent residency in Singapore or if it was granted under Singapore’s global investment programme. He must have been a permanent resident for at least two years before applying for Singapore citizenship.
Shein did not comment on whether he would seek permanent residency or Singapore citizenship for Xu. Reuters Xu is a “Chinese citizen with long roots in China.”
Rise of Singapore
Shein is understood to plan to quadruple its workforce in Singapore to around 200 by the end of the year and is currently advertising vacancies in government relations, HR, marketing and IT.
Shein says it is expanding its Singapore office to support the company’s growth in the Southeast Asian market and is not the first Chinese company to invest in Singapore.
political turmoil in hong kong Also, the introduction of China’s national security law has prompted many companies to seek a more stable business environment within Asia.
The city-state is increasingly seen as a neutral hub amid trade tensions between China and the United States, and some of China’s biggest tech companies have rallied to bolster trade amid ongoing tensions between Washington and Beijing. Over the past few years, we have expanded our operations in Singapore.
Tencent and Alibaba stepped up their presence, and TikTok owner ByteDance announced it would expand its business presence in Singapore in 2020 to “support growing businesses in Southeast Asia and beyond,” making billions in invested dollars. The office as a “strategic addition” to the current office.
Always considered a regional hub for Western companies due to its sophisticated financial and legal system, Singapore is now attracting the attention of Chinese companies, including Shane.