Fast fashion giant Shein has reportedly initiated its IPO process for the London Stock Exchange.
- The company aims for a £50 billion valuation as it prepares its prospectus for the Financial Conduct Authority.
- Switching from New York, Shein has pivoted to London after talks with UK Chancellor Jeremy Hunt.
- Former Chancellor Sajid Javid is in discussions to advise Shein, amidst industry concerns.
- Legal challenges arise as Oh Polly sues Shein, with additional past lawsuits from major brands.
In a strategic move, fast fashion retailer Shein has embarked on securing a listing on the London Stock Exchange, reportedly starting the IPO process in early June. This development, revealed by sources to Reuters, underscores the company’s ambition to consolidate its market position with a projected £50 billion valuation. Shein’s engagement with the Financial Conduct Authority for prospectus approval demonstrates its commitment to meet regulatory frameworks in its pursuit of becoming a publicly-traded entity in the UK.
Initially contemplated in New York, Shein’s decision to pivot towards a London listing highlights its adaptive strategy, influenced by discussions with UK government officials, notably Jeremy Hunt. This shift indicates a broader international vision for the company, aligning its operations more closely with European markets.
The involvement of Sajid Javid, a former Chancellor of the Exchequer, in potential advisory capacities, although not confirmed, signals Shein’s intent to leverage significant political and economic expertise in its strategic operations. This preparation comes amidst critiques from the British Fashion Council, which has labelled the colossal floatation proposal as a significant concern for the industry.
Legal hurdles also accompany Shein’s London IPO ambitions. The company faces an intellectual property lawsuit filed in the English High Court by competitor Oh Polly, alongside its sister brand Bo&Tee. This follows a pattern of previous legal confrontations with established brands like H&M, Uniqlo, and Dr Martens, reflecting ongoing challenges Shein faces regarding intellectual property and competitive practices.
Despite these obstacles, Shein’s pursuit of a London Stock Exchange listing marks an evident shift in its global strategy, potentially culminating in a trading status by year’s end, provided the prospectus receives the necessary approval from the Financial Conduct Authority.
Shein’s IPO filing represents a significant strategic shift, aiming to deepen its integration into the European market through the London Stock Exchange.
