Fast Fashion Giant SHEIN Considers London Listing, Sources Say

Consumer Staples Author: EqualOcean News, Jiahui Liao Editor: Yiru Qian Feb 28, 2024 04:52 PM (GMT+8)

Sources say that UK Chancellor and Fast Fashion Giant SHEIN Discuss Possibility of London Listing.


On February 27th, market sources revealed that Chinese fast fashion cross-border e-commerce platform SHEIN, facing obstacles in its plans for a New York listing, is considering the possibility of listing in London. The UK's Telegraph commented that this move could provide a much-needed boost to the UK.

Previously,SHEIN was rumored that it has already submitted an IPO application to the US Securities and Exchange Commission, seeking a valuation target of USD 80 billion to USD 90 billion. However, SHEIN has faced strict scrutiny from the US government. Bloomberg reported that US Senator Marco Rubio and others urged the US Securities and Exchange Commission to block SHEIN's US listing, stating that the company should disclose more information about its operations in China. Last year, a US congressman also proposed an investigation into SHEIN's supply chain in China.

Sources informed Bloomberg that SHEIN believes it is unlikely for the US Securities and Exchange Commission to approve its US IPO plans, and is now exploring the possibility of listing in London. However, the preferred listing location for SHEIN remains the US. If a decision is made to turn to London or elsewhere for listing, a new overseas listing application would need to be submitted to Chinese regulatory authorities. The sources added that the company also does not rule out the possibility of listing in locations such as Hong Kong or Singapore.

An analysis by the Indian site "BNN Breaking" on the 27th suggested that obtaining approval from US regulatory authorities seems to be a tough battle for SHEIN, while London offers a more relaxed regulatory environment for its IPO. The strategic move to list in London not only signifies an alternative listing location but also suggests that SHEIN's business model and corporate transparency will encounter less resistance.

The UK is making efforts to persuade companies to list in the UK, aiming to reduce the outflow of domestic companies to the US and other countries. According to data compiled by Bloomberg, the UK raised only about USD 1 billion through IPOs last year, marking the lowest level in decades and the worst year for IPOs in modern UK history.

Last year, despite the UK government's full-scale persuasion, Arm, the UK chip design company under Japan's SoftBank Group, abandoned plans for a London listing and ultimately submitted an application to the US Securities and Exchange Commission, choosing to list in New York. "BNN Breaking" predicts that if SHEIN goes public, it could serve as a beacon, attracting more international companies and investors to the UK capital. A SHEIN listing in the UK would also demonstrate the openness and adaptability of the UK market.

The spokesperson of SHEIN declined to comment on the speculation.