Shein explores London IPO under unique terms, possibly listing less than 10% of shares.
- The fashion retailer seeks exemption from UK listing rules introduced in 2021.
- Shein’s potential IPO could value the company at £5.20 billion if granted approval.
- Regulatory scrutiny over Shein’s supply chain practices is delaying the IPO process.
- Uncertainty surrounds how much Shein aims to raise and its current valuation.
Fast fashion giant Shein is in deliberations to initiate its public offering on the London Stock Exchange with less than the standard 10% share sale, as indicated by sources familiar with the matter. This move is aimed at circumventing the 2021 regulation requiring at least 10% of shares to be made public, allowing the company to maintain greater control over its shares.
If the UK Financial Conduct Authority (FCA) approves this request, it will mark the first instance of such an exemption since the rule’s inception. This strategic decision is a part of Shein’s broader plan to capitalise on London’s financial market, potentially valuing the IPO at an impressive £5.20 billion.
Despite these ambitious plans, Shein’s IPO remains under intense scrutiny. The retailer is currently under review by the FCA following challenges regarding its supply chain ethics, specifically allegations linked to an advocacy group concerned about the Uyghur population in China. This legal examination adds a layer of complexity to the IPO approval process, delaying the potential timeline for Shein’s market entry.
The precise figures detailing Shein’s valuation and its fundraising goals through this listing are not publicly disclosed yet. However, the company’s maneuvre to list under the 10% rule signifies its strategic intent to maintain operational autonomy while accessing new capital channels.
Shein’s efforts to engage the London market come amid broader industry trends of increased regulatory oversight and transparency requirements, underscoring the challenges and opportunities facing multinational retail businesses today.
Shein’s potential London IPO under a unique listing condition highlights its strategic navigation through complex regulatory landscapes.
