Shein, according to sources, filed confidential papers with Britain’s market regulator early in June. This started the process of a possible London listing for the online fast fashion retailer later this year.
Reuters reported May that the China-founded firm, valued at $66bn during a fundraising round, had begun exploring a listing on London Stock Exchange. Shein’s initial plan to list on the New York Stock Exchange was thwarted by US legislators.
Both a Shein spokesperson and a Financial Conduct Authority spokesperson (FCA) declined to comment.
The sources who were aware of the deal declined to name themselves as they weren’t authorised to talk to the media.
Shein, a company known for its $5 tops, $10 dresses and $10 skirts, has not yet announced the date of their initial public offering.
Shein informed China’s securities regulator about its new listing venue. One of the sources said that Shein has not yet received approval from China Securities Regulatory Commission.
The CSRC didn’t immediately respond to a Reuters comment request.
The FCA typically takes up to two months to review and make a decision on clearance.
Shein could file a public intention to float at the London Stock Exchange if both the FCA AND CSRC gave their approval.
This would start a four-week book-building and price guidance process before trading.
Shein will have to deal almost certainly with a new administration if it decides to go ahead with the UK listing.
Labour met Shein representatives, and expressed its support to the potential London listing. This would be a boon for a UK marketplace that has seen many high-profile companies opt for other venues.
Some senior MPs, however, have questioned Shein’s suitability, and demanded greater scrutiny over its labour practices and supply chain, as well as the use of an exemption from import taxes.
Shein said that it invests in governance and compliance throughout its supply chain, and that duty-free treatment for low-value packages is not crucial to its success.
Shein’s London filing represents a departure from its longstanding US IPO plans, which have run into obstacles both at home and abroad. Reuters reported this.
Sources have confirmed that the group filed a confidential IPO application with the US Securities and Exchange Commission (SEC) in November and approached CSRC in the same month to ask Beijing for its approval.
Reuters reported that earlier this year, the CSRC informed Shein of its decision not to recommend a US IPO because of the supply chain problems at the company.
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