Shein, the Chinese-founded online fast-fashion giant, is planning an initial public offering on the London Stock Exchange in the first quarter of 2025, according to The Times. Regulatory approval is currently pending for the move, the newspaper added.
Why it matters: The Times reported that the IPO could become one of the largest deals on the London Stock Exchange in the past decade. If Shein does opt for a UK listing, it would provide a much-needed boost to the London market, the media outlet added.
Details: According to the Times, Shein is working with US investment banks Goldman Sachs, JP Morgan, and Morgan Stanley on the potential float.
- Shein’s valuation for the IPO is expected to be set at around £50.3 billion. The company is preparing to hold formal investor roadshows in the coming weeks, during which its management team will meet with institutional investors, according to The Times. Currently, the IPO prospectus is being circulated among select stakeholders but has not yet been officially released, the report noted.
- Shein initially planned to list in the United States, but the US Securities and Exchange Commission claimed that its application would not be accepted unless the company submitted public filings. Shein has since shifted its focus to a London listing. The Times report indicated that French ministers have also attempted to persuade Shein to list in France.
- According to the Times, the plan has sparked concerns in the UK about Shein’s environmental, social, and governance (ESG) credentials, particularly its labor and supply chain policies. Previously, Shein admitted that employees at its Chinese factories worked more hours than allowed under the country’s labor laws. Several senior British politicians have called for stricter scrutiny of the listing.
- Although serious question marks remain around Shein’s environmental and labor practices, some observers have suggested that the listing could potentially spur the firm to address such issues by encouraging greater transparency and accountability due to the reporting required by the Exchange.
Context: Founded in Nanjing by Chris Xu in 2008, Shein has grown from a low-cost Chinese clothing merchant into a global online fashion giant with sales reaching $50 billion by 2024, while its app generated a total of 199.37 million downloads worldwide in 2024(as of October).
- According to Reuters, Shein is the world’s largest fast fashion retailer with an 18% global market share.
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