Chinese fast-fashion giant Shein confidentially filed papers with Britain’s markets regulator early this month for listing on the London Stock Exchange, two sources with knowledge of the deal said.
If successful, the listing could become one of the largest initial public offerings (IPO) globally this year.
The China-founded company, which was valued at $66 billion in a fundraising round last year, started engaging with its financial and legal advisors to explore a London listing early this year.
Also on AF: EU And China Agree to Negotiations on EV Tariffs, Minister Says
That was after its long-running plan to list in New York remained stalled due to regulatory roadblocks in China and the US.
But the path to a London listing may not be smooth for Shein either, with British lawmakers protesting against its possible IPO.
Last month, UK lawmakers said the fashion retailer should not be permitted to list in London due to concerns about its labour practices. Shein has been accused of using forced labour in China’s Xinjiang region — allegations that it has denied.
British lawmakers said the firm, known for its $5 tops and $10 dresses, needed more parliamentary scrutiny. “No company using modern slavery should be listed in London,” Sarah Champion, the Labour chair of the International Development Committee, said.
Nod from Beijing pending
Meanwhile, it is not immediately clear when Shein plans to launch the initial public offering (IPO).
Shein has updated China’s securities regulator officially about its change of listing venue, sources said. But the company is yet to receive a nod from the China Securities Regulatory Commission (CSRC), one of them said.
Shein requires Beijing’s nod for the IPO, despite having shifted its headquarters to Singapore, due to its massive reliance on China-based manufacturers.
Furthermore, according to China’s new rules for firms looking list overseas, a host of Chinese authorities — along with CSRC and the country’s cybersecurity regulator — can get involved in approving offshore IPO applications.
Moving ahead with a listing without approval could lead to a forced delisting, fines and a debilitating regulatory crackdown — as was seen in the case of Didi Global’s New York listing in 2021.
Earlier this year, CSRC informed Shein that the regulator would not recommend a US IPO due to the company’s supply chain issues.
The CSRC’s stance on Shein’s London IPO plans remains unknown.
- Reuters, with additional editing by Vishakha Saxena
Also read:
Shein Looking to File For IPO in London as US Plans in Limbo
Shein ‘Facing Cybersecurity Review’ in China Ahead of US IPO
China’s Feuding Online Fashion Retailers: Temu vs Shein
China Offshore Listings Backlog Blamed on New Scrutiny Rules
US Lawmakers Demand Supply Chain Check Before Shein IPO
China’s Didi Tried to Defraud Investors With 2021 IPO: US Court
China E-Commerce Giant Shein’s Sales Soar 50% – Pandaily
China Fashion Giant Shein Accused of Design Theft – WSJ
