Fast fashion giant Shein is reportedly considering asking UK regulators to abandon listing rules that require at least 10% of shares to be sold to the public.
Two people with knowledge of the matter told Reuters that the Singapore-headquartered e-commerce platform was exploring this option to facilitate its London IPO. They refused to be identified.
The company, known for its competitively priced wares, was valued at $66 billion in a fundraising round last year. Following the 10% rule, Shein’s UK IPO would be worth $6.6 billion. The largest European IPO this year was a $2.9 billion deal by Puig.
A more recent valuation of Shein has not been made public, so the current valuation of the company remains unknown.
In 2021, London’s listing rules were changed to increase international interest. It cut the proportion of shares that a company is required to float from 25% to 10%.
Shein began exploring its London listing earlier this year. Its original plan to list in New York came unstuck following opposition from US lawmakers.
In June, Britain underwent its biggest reform of company listing rules in three decades, in an effort to help it compete with New York and the EU for new issuers.
The Chinese-founded company confidentially filed for a London listing with the Financial Conduct Authority (FCA) in June. However, the FCA was taking longer than usual to approve its application. This was because it needed to check its supply chain oversight and assess legal risks after China’s Uyghur population challenged the listing, two sources told Reuters.
Britain’s Independent Anti-Slavery Commissioner has also raised concerns over Shein achieving its UK IPO due to allegations over labour practices in its supply chain.
Shein is reportedly awaiting approval from China’s securities regulator for its planned London IPO, according to Reuters. Coresight Research projects the company’s revenues to reach $50 billion this year, marking a 55% increase from 2023.
Shein has been approached for comment.
