Fashion group Shein plans to apply for listing in London in the coming days

Unlock Editor’s Digest for free

Online fashion giant Shein plans to confidentially file for a listing in London as soon as the next few days, setting the stage for a blockbuster initial public offering in the UK.

Shein is set to privately file with UK regulators its intention to go public, according to people familiar with the matter, who cautioned that the timing of the filing could still change.

Shein had been leaning toward listing in London after tensions between Beijing and Washington stalled its plans for an IPO in New York.

Shein Chief Executive Donald Tang told the Financial Times last month that the Singapore-based company had made “progress” in changing the perception that China controlled Shein “but not enough” to win over US lawmakers. .

The company had previously filed preparatory documents with the Securities and Exchange Commission more than six months ago, but concerns about Shein’s ties to Beijing became the biggest obstacle on the path to a US listing.

A confidential filing involves the presentation of preliminary information and does not necessarily mean that an IPO is imminent. It will allow Shein to be ready to list more quickly if the company decides to move forward.

The on-demand e-commerce group was valued at $66 billion in its latest funding round, and landing an IPO the size of Shein would be a blow to the London Stock Exchange. London has been losing listings to its larger and more liquid New York rivals, the New York Stock Exchange and Nasdaq.

Shein was founded in China and most of its suppliers are located in the country. However, it is now based in Singapore and does not sell its products in China.

The company hit a record of more than $2 billion in profits by 2023, surpassing the $700 million in net income it generated in 2022 and the $1.1 billion in 2021. By comparison, rivals H&M and Zara owner Inditex reported net profits of 8.7 billion Swedish crowns ($820). million) and 5.4 billion euros ($5.8 billion), respectively, in their most recent fiscal years.

Sky News previously reported on the unveiling plans on Sunday. Shein declined to comment.

Leave a Comment