The Chinese fast-fashion behemoth SHEIN is reportedly considering asking UK authorities to relax listing requirements that demand at least 10 per cent of its shares be offered for sale to the general public prior to its London initial public offering.
SHEIN was considering this option to help with its initial public offering (IPO), according to Reuters, which quoted two people with knowledge of the situation. If approved, it would probably be the first time a London-based company was permitted to list below the 10 per cent threshold, according to the media site. It occurs as SHEIN, who first filed the listing with the Financial Conduct Authority (FCA) in June, is still experiencing problems in formally launching it.
According to recent reports, NGOs’ concerns about SHEIN’s alleged forced work and lack of transparency are the reason the regulator is taking longer than usual to accept the application.
The business would normally have to comply with the London Stock Exchange’s regulations, which reduced the per centage of shares an issuer must float from 25 per cent to 10 per cent in 2021 in an effort to increase attractiveness.
In a funding round last year, SHEIN was reportedly valued at US $ 66 billion, according to several media sources. According to Reuters, the IPO would be worth US $ 6.6 billion with a 10 per cent flotation at this value.
