Ahead of the planned float, Shein has approached fund managers based out of London for introductory meetings.
After a hurdle to list in New York, fast fashion retailer Shein is preparing for a London listing, as per a report by Reuters. Within this month, Shein aims to update the securities regulator in China about its change in venue for the IPO. Following this, it will file papers with the London Stock Exchange.
As per the report, Shein, which as per the report was valued at $66 billion in a fundraising campaign last year, began corresponding early this year with the teams of its financial and legal consultants stationed in London to investigate a listing on the LSE.
Ahead of the planned float, Shein has also approached fund managers based out of London for introductory meetings. In November last year, Shein confidentially filed for an IPO with the US Securities and Exchange Commission. The company had also approached the China Securities Regulatory Commission to get Beijing’s nod for the same.
While the plan for having an US-based IPO is still there, regulatory hurdles being faced by the company are delaying the process. Further, the company has also faced allegations of labor malpractice from US lawmakers. While preparing for an IPO, the company was asked by US lawmakers to prove that it was not using forced labor in its work.
Critics fear that Shein might outsource manufacturing to contract companies in China's Xinjiang province, where governments and activists have charged China with incarcerating Uyghurs and other mostly Muslim minorities. Beijing disputes any wrongdoing.
Interestingly, Shein, which seeks cheap fashion clothes in more than 100 countries, doesn't have any manufacturing facilities. However, the company relies primarily on contract manufacturers. This makes the company subject to the rules of the China Securities Regulatory Commission.
Meanwhile, following the decision by businesses like British chip designer Arm to list in New York in an effort to access larger liquidity pools, this move by Shein could signal a turning point for London, as per the report. Out of over thirty IPOs in Europe so far this year, just four have occurred in the United Kingdom.