Shein is set to commence preliminary investor discussions, targeting a London IPO.
- These meetings aim to address questions and assess interest among major investors.
- Plans for the IPO await approval from UK and Chinese regulators.
- There is heightened scrutiny over Shein’s labour practices and environmental impact.
- The IPO could potentially invigorate London’s IPO market.
Shein is poised to initiate early-stage investor meetings as part of its strategic preparation for a London Initial Public Offering (IPO). These informal gatherings, predominantly held in Europe, will serve as a platform for Shein to field questions from significant investors and gauge their potential interest in participating in the IPO. A source familiar with the proceedings disclosed this information to Reuters.
The company aims to execute its public market debut before the end of the current quarter, contingent upon securing the necessary regulatory approvals from the Financial Conduct Authority (FCA) in the UK. Further insight from a distinct source suggests that Shein is determined to launch within this timeframe.
While Shein advances towards its IPO, it faces intensified examination regarding its corporate practices, particularly relating to worker treatment and environmental sustainability. How effectively the company addresses these concerns may influence its ability to attract substantial backing from influential global investors, critical to achieving its target valuation of £55 billion.
Additionally, the forthcoming listing in London emerges after Shein’s plans for a US IPO encountered significant regulatory challenges between Chinese and American authorities. The current proposal for a London listing still necessitates clearance from the China Securities Regulatory Commission (CSRC). However, an updated review of the CSRC’s online records indicates Shein’s absence from the roster of sanctioned offshore IPO candidates.
Despite the regulatory hurdles and reputational challenges, the potential London IPO is seen as a vital opportunity to revitalise the city’s IPO market, which has recently seen a downturn.
Shein’s investor meetings mark a critical step towards its London IPO amidst regulatory and ethical challenges.
