Fast fashion giant SHEIN has reportedly received the green light from the UK’s Financial Conduct Authority (FCA) for its highly anticipated initial public offering (IPO) in London. This approval comes after a period of waiting for the China-founded company, which confidentially filed its IPO papers with the UK regulator in June of the previous year, according to a Reuters report.
Sources familiar with the matter indicate that while the FCA approval is a significant step forward, SHEIN still requires the nod from Chinese regulatory authorities before it can proceed with its London listing. The fashion retailer has reportedly informed the China Securities Regulatory Commission (CSRC) of the FCA’s decision and is currently awaiting their response.
SHEIN’s plans to float on the London Stock Exchange have faced considerable challenges since its initial application. The FCA is understood to have conducted thorough checks on the retailer’s supply chain oversight and assessed potential legal risks, particularly following concerns raised by an advocacy group representing China’s Uyghur population.
Earlier this year, SHEIN faced further scrutiny from UK Members of Parliament (MPs) who accused the company of “wilful ignorance” regarding its supply chain. This accusation followed a contentious appearance before the business and trade committee by Yinan Zhu, SHEIN’s general counsel for Europe, Middle East and Africa. During the hearing, MPs expressed a near “zero confidence in the integrity” of SHEIN’s supply chain after Zhu declined to comment on whether the company sources cotton from China, specifically the Xinjiang region.
Despite these setbacks and ongoing scrutiny regarding its sourcing practices, the FCA’s approval marks a crucial milestone for SHEIN’s ambitions to go public in London. The company now awaits the critical response from Chinese regulators to determine whether its IPO plans can move forward.
