As early as next week, SHEIN, the massive online retailer of dresses with prices as little as £ 5, is apparently planning to go public on the stock market in London as opposed to the US.
According to This is Money, reports indicate that the fast fashion behemoth is inclined to float its £ 71 billion on the London Stock Exchange. Jeremy Hunt and Donald Tang, the chairman of SHEIN, had a meeting last month to talk about the possible float.
Moving away from a New York listing, which would have reduced risk in the UK, is believed to have been prompted by the US Congress’s most recent threat to outlaw the Chinese social media site TikTok. SHEIN filed filings in November in anticipation of a possible listing in New York, but has encountered significant opposition in the US.
Chinese companies are apparently not often listed in New York, and the London Stock Exchange is itching for a high-profile float to turn things around.
In the UK, initial public offerings (IPOs) raised approximately £ 790 million last year, the least amount in decades, according to Bloomberg. There have been requests for the UK to continue serving as the listing location for Chinese companies, while US and Chinese relations have cooled over the years.
At the end of last year, it was first reported that SHEIN was having discussions with executives of the London Stock Exchange. If the SHEIN float goes through next week, it will rank among the UK’s largest blockbuster initial public offerings (IPOs) in recent memory.
Founded in 2012, the company has grown rapidly because of its affordable apparel and attraction to Gen Z customers. It is currently estimated to be worth £53.8 billion. However, the online retailer has come under fire for how it treats Chinese labourers and how it affects the environment.
With intentions to establish a hub in Manchester, the UK fast fashion industry’s headquarters are home to companies like Boohoo and In The Style. SHEIN has already established significant ties to the UK. Also, in October of last year, it made its first acquisition in the United Kingdom when it purchased Manchester-based fast fashion company Missguided from Frasers Group.
