Shein planning £50bn London listing early next year - reports

18th Nov 2024 07:22

(Sharecast News) - Singapore-domiciled Chinese fast fashion giant Shein is preparing for a highly anticipated initial public offering on the London Stock Exchange in early 2025, it was reported on Monday, targeting a valuation of £50bn.

According to the Times, the move would be one of the largest listings on the London market in a decade.

The company, founded in China in 2012 by chief executive officer Chris Xu, had started engaging with institutional investors in the UK and the US through informal meetings ahead of an official roadshow expected in the coming weeks, the Times said.

Shein was reportedly collaborating with Goldman Sachs, JPMorgan and Morgan Stanley to manage the offering.

A draft prospectus had apparently been shared with select stakeholders, although no formal publication had occurred yet.

Shein explored a US listing before shifting its focus to London after encountering regulatory challenges with the US Securities and Exchange Commission, which required a public filing.

While London offered a less stringent process, the listing still faced scrutiny over Shein's environmental, social, and governance (ESG) practices, particularly its labour policies and perceived tax advantages in the UK.

Regulatory hurdles in China also slowed the IPO's progress, the Times said.

Despite its Singapore headquarters, Shein's supply chain and operations remained heavily rooted in China, subjecting it to Beijing's overseas listing rules.

Additionally, potential shifts in US trade policies, including changes to the 'de minimis' import tax exemption, could pressure Shein to adjust its pricing model, risking its competitive edge.

Reporting by Josh White for Sharecast.com.