Shein eyes IPO on London Stock Exchange with £50B valuation

26 Jun 2024 --- Shein reportedly filed confidential papers with UK regulatory bodies ahead of a potential initial public offering (IPO) on the London Stock Exchange. The fast fashion giant is rumored to be preparing to list in the second half of the year. 

If the listing proceeds, Shein is expected to receive £50 billion (US$63.3 billion), according to a Bloomberg report. However, Chinese authorities have yet to give the green light. 

The report also reveals that London will likely welcome Shein’s business despite environmental, social and governance concerns, having missed out on other European IPOs. The company has yet to receive approval from the China Securities Regulatory Commission and the Financial Conduct Authority. However, if it does, Shein could publicly file an intention to float on the London Stock Exchange.

New York to London
According to Reuters, the Labour Party, expected to take power in the next British election, met with the retailer and indicated its support of the potential London listing.

However, some senior lawmakers, including the chairs of three parliamentary committees, questioned Shein’s suitability and called for greater scrutiny of its labor practices, supply chain and use of an import tax exemption.

Shein eyes the London Stock Exchange with support from the Labour Party.Some reports suggest Shein was initially exploring a New York listing but faced opposition from US lawmakers and, therefore, did not continue to pursue the option.

Going public and private
Earlier this year, Puig Brands debuted on the Spanish Stock Exchanges in what was recognized as “Europe’s biggest IPO of the year.” However, the Barcelona-based beauty and fragrance firm struggled to register significant gains in trading.

Hong Kong-based L’Occitane International is still trying to privatize and recently sweetened its bid, whereby each shareholder would receive HK$34 (US$4.35) in cash or ten shares in the new private company. 

However, with its latest earnings results showing strong growth, especially for brands like Sol de Janeiro, which is expected to clear US$1 billion in retail sales this financial year, some L’Occitane shareholders may be looking for an even sweeter proposal.

By Sabine Waldeck