Shein, an online fashion retailer founded in China and headquartered in Singapore, has discreetly submitted a filing for a possible public listing in London. This information reportedly came from anonymous individuals acquainted with the matter.
Shein Secretly Files For London IPO
Financial experts have found the timing of this IPO filing odd as the company is still waiting on approval from Chinese authorities. This potential listing could attain a value of roughly £50bn and would likely be one of the biggest in London in 10 years.
The filing is an application and does not mean automatic IPO approval. Representatives from Shein and the Financial Conduct Authority (FCA) did not offer official comments. Bloomberg reported that should this Shein listing materialise, it would allow London to regain some market value after several firms moved their main listings to New York.
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Bloomberg hosted an election debate on Monday 24 June 2024, and the possible Shein listing came up. Jonathan Reynolds from the Labour Party indicated that he had held meetings with Shein executives and believes that a London listing is a good move to ensure compliance with the UK’s high financial regulatory standards. He added:
If they’re doing business in the UK we should seek to regulate them from the UK.
The UK’s current business secretary, Kemi Badenoch, however, expressed concerns regarding Shein’s probable tax evasion via direct shipping to customers and alleged questionable working practices.
The company sells heavily discounted goods, some for as little as $2. There are also allegations of counterfeit items making their way through Shein channels. Analysts pointed out that Shein needs more than approval from the regulator – its IPO success also heavily depends on investor interest and ESG compliance.
