Shein edges closer to London IPO amid US listing setbacks

Shein has edged closer to a London IPO as the fast-fashion firm faces setbacks to its plans to list in New York.

The Chinese e-commerce giant has concluded its application for an IPO in the US is likely to be rejected by the securities regulator, according to a report by Bloomberg, with London the likely frontrunner among a list of possible alternative stock markets including Hong Kong and Singapore.

Shein is now in the early stages of exploring a London listing application, after reportedly holding talks with senior figures at the London Stock Exchange in December.

A IPO in the UK would provide a much-needed shot in the arm to a lacklustre spell for the London stock market, which saw just 23 issuers listing in 2023, a 49% decline on the 45 recorded in 2022, making it the quietest year on record since 2010 according to figures from EY.

Shein is thought to be seeking a valuation of as much as $90 billion, which would propel it into the top-10 biggest companies on the FTSE 100. But the firm is reportedly still working on its US listing application and would require a fresh overseas listing approval from Chinese regulators if it dropped New York in favour of London.

The e-commerce firm’s ambitions to float in the US have been hamstrung by political tensions with China, with some US lawmakers calling for the listing to be blocked, citing concerns over its operations in Xinjiang.

The company has also been embroiled in a series of legal disputes with fast-fashion rival Temu, which in December filed a lawsuit against it in the US District Court of Columbia after accusing it of “mafia-style” competitive tactics.

Since arriving in the UK in 2021, Shein has already become one of the country’s biggest clothing retailers, racking up sales of more than £1 billion in the 16 months to the end of December 2022.

The firm has also shown appetite for acquisitions in the UK, having bought women’s clothing brand Missguided in October last year.