Shein closer to London IPO after securing watchdog’s approval, reports say
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The company has been in talks over an initial public offering (IPO) on the London Stock Exchange over the past year.
Reuters reported on Friday that the Financial Conduct Authority (FCA) has given its preliminary approval for the stock market listing to go ahead.
Before any firm’s shares can be traded on the London markets, they must apply to the FCA for admission to list and submit a prospectus for approval.
This document should include detailed financial and company information, as well as the risks of investing in the business.
While the regulator can sign off a prospectus and give the green light for a listing, it does not dig deep into a company’s general behaviour, nor can it probe any breaches of rules such as relating to modern slavery or tax laws.
Shein, which was founded in China but is now based in Singapore, has seen efforts to float face a variety of obstacles, including political pressure in the UK over alleged supply chain and labour abuses.
Current efforts now face further challenges from US president Donald Trump’s new tariffs, with China facing a 125% levy on all goods exported to the US as a trade war between the two nations intensifies.
The retailer is also expected to be impacted by Mr Trump scrapping a rule that meant goods under 800 US dollars (£612) in value were exempt from tariffs.
Meanwhile, Shein reportedly would still need the approval of Chinese regulators to go ahead with an IPO in London.
Russ Mould, investment director at AJ Bell, said Shein listing in London could “help raise the profile of the UK market and potentially draw in more big names”.
But he added: “Getting its IPO away at all could prove tricky thanks to the levels of global market volatility unleashed by the US administration’s trade policies.
“This is only exacerbated by the fact Washington continues to pursue a tit-for-tat trade war with Beijing.
“Not only will this make it more difficult to convince investors to back its listing, but Shein does business in the US and could well see a significant impact from tariffs beyond just a hit to sentiment.
“It suggests Shein will have to stress to prospective investors that its growth is not reliant on the US and that expansion across a wide range of countries is key to its future.”
The FCA declined to comment on the reports. Shein could not be reached for comment.