Shein, a major player in fast fashion, is taking steps towards a London IPO amid regulatory processes.
- Investor meetings are planned to assess interest in Shein’s highly anticipated London listing.
- Recent regulatory challenges in the US have shifted Shein’s focus to the UK market.
- Labour practices and environmental concerns pose serious questions to potential investors.
- The IPO success could revitalise London’s slow IPO market and impact Shein’s valuation.
Shein, a leading figure in the fast fashion industry, is preparing for informal discussions with investors as it seeks to list publicly in London. These meetings are planned to take place across Europe in the coming weeks, aiming to gauge investor interest and address any concerns raised. The company’s decision comes as it awaits the necessary approval from the Financial Conduct Authority (FCA), with intentions to launch its float within the current quarter.
The move towards a London Initial Public Offering (IPO) follows a series of complications faced by Shein in the US, where regulatory difficulties have created obstacles to its plans. According to sources, the retailer is yet to receive any guidance from the China Securities Regulatory Commission (CSRC) regarding its listing. As of the latest review, Shein’s name does not feature in the list of offshore IPO candidates published by the CSRC.
Concerns over Shein’s labour and environmental practices have been brought to the forefront as the company seeks backing from major institutional investors. There is significant pressure on Shein to demonstrate improvements in these areas to secure investor confidence. Achieving the £55 billion valuation it obtained last year hinges on addressing these non-financial issues effectively.
Analysts suggest that a successful IPO could rejuvenate London’s IPO market, noted for its current sluggishness. However, Shein has faced criticism from industry stakeholders for exploiting tax loopholes in overseas shipments, which some argue offer the company an unfair competitive edge.
Shein’s ability to address regulatory and ethical concerns will be crucial to the success of its London IPO.
