Shein is progressing towards a potential IPO in London by involving additional banks in the process.
- Barclays and UBS are now onboard as bookrunners, adding to the team currently assisting in the IPO.
- This decision follows informal roadshows held across Europe to engage with investors.
- The potential IPO, potentially valuing Shein at £50bn, faces scrutiny over tax and labour practices.
- Prime Minister Keir Starmer has highlighted the importance of scrutinising workers’ rights for companies listing in London.
Shein has taken significant steps towards its anticipated initial public offering (IPO) in London by engaging additional banks in the process. Barclays Plc and UBS Group AG have been appointed as new bookrunners, joining a robust team including Goldman Sachs, JPMorgan Chase, and Morgan Stanley, according to Bloomberg’s report. The fast fashion retailer’s IPO, if successful, could occur as soon as early next year; however, it remains subject to ongoing discussions with potential changes to its details.
Recently, Shein conducted several informal roadshows throughout Europe. These events were aimed at addressing pertinent questions from key investors, thereby maintaining strong communication channels and transparent advisory processes. Such proactive engagements form an integral part of Shein’s strategic approach to navigating the complexities of an international IPO offering.
Estimated to value the company at approximately £50 billion, the prospective IPO is not without its challenges. Industry experts have voiced concerns regarding Shein’s exploitation of a tax loophole concerning overseas shipments, which some argue grants the company an unfair commercial advantage. Additionally, Shein’s labour practices have been criticised, placing the company under further scrutiny from ethical and regulatory standpoints.
In alignment with Shein’s public offering plans, Prime Minister Sir Keir Starmer underscored that businesses seeking to list in London must be prepared for rigorous examinations concerning worker rights. His statement highlights the UK’s commitment to ethical business practices and the protection of labour rights as essential criteria for market listing eligibility.
The move towards a London IPO signals Shein’s strategic expansion despite facing significant regulatory and ethical scrutiny.
