Shein Pop-Up Sale, Spain.
HONG KONG (APRNEWS) - Shein, the popular online fast-fashion retailer, has confidentially filed papers with Britain's markets regulator, kicking off the process for a potential London listing later this year. This move marks a significant shift from the company's earlier plans to list in New York, which faced opposition from U.S. lawmakers.
Details of the Listing
Sources indicate that Shein, valued at $66 billion in a recent fundraising round, began exploring a listing on the London Stock Exchange early this year. The company has informed China's securities regulator about the change of listing venue but has yet to receive approval from the China Securities Regulatory Commission (CSRC).
The Financial Conduct Authority (FCA), Britain's markets watchdog, typically takes a couple of months to vet and decide on clearance. With green lights from both the FCA and CSRC, Shein would be positioned to publicly file its intention to float on the London Stock Exchange, initiating a four-week process of book building and price guidance before admission to trading.
Regulatory and Political Landscape
If Shein proceeds with the UK listing, it will likely have to navigate the country's changing political landscape. Opinion polls suggest that Keir Starmer's Labour Party is poised to win Britain's upcoming election, ending the Conservative Party's 14-year rule. Labour has met with Shein and expressed support for its potential London listing, which would boost the UK's market that has seen several high-profile companies choose other venues.
However, some senior lawmakers have raised concerns about Shein's labour practices, supply chain, and use of an import tax exemption. Shein has responded by stating that it is investing in strengthening governance and compliance across its supply chain and that the duty-free treatment of low-value parcels is not critical to its success.
Challenges and Market Conditions
Shein's decision to shift from a U.S. IPO comes amid regulatory challenges both at home and abroad. The CSRC had informed Shein earlier this year that it would not recommend a U.S. IPO due to the company's supply chain issues. Additionally, market volatility arising from political uncertainty has created a challenging environment for new listings in Europe, as illustrated by Italian luxury sneaker maker Golden Goose's recent decision to postpone its IPO on the Milan bourse.
As Shein continues to pursue its listing plans, the outcome will be closely watched by industry stakeholders and financial analysts. The success of Shein's London listing could have significant implications for the company's global strategy and its relationship with investors and regulators.
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