By Shein, the global online fashion retailer, is gearing up for a significant step towards a London stock market debut that could value the company at approximately £50 billion. This move is set to be one of the most noteworthy and debated listings in the UK for years.
The company, originally established in China and now based in Singapore, is slated to submit a confidential prospectus to the UK’s Financial Conduct Authority. This submission, expected possibly within the next week, signals Shein’s intent to pursue a public offering in London, which could occur as early as this summer or early autumn.
Despite initial plans for a New York listing, Shein faced political challenges, leading to a tepid response from US regulators. In contrast, meetings between Shein’s executive chairman, Donald Tang, and UK officials, including Chancellor Jeremy Hunt, highlight the UK’s keen interest in securing Shein’s IPO over the US.
While the prospectus filing with the FCA doesn’t ensure a London listing, it marks a pivotal moment, indicating a strong likelihood of Shein’s float in the City. The company, which also owns the UK fashion label Missguided, has been scrutinized for its supply chain practices, particularly its use of cotton from China’s Xinjiang region.
Should the listing proceed, Shein aims to raise over £1 billion through the sale of new shares, a modest amount relative to its projected valuation of more than £50 billion. The company’s valuation stood at $66 billion during its last fundraising early in the previous year.
