Fast Fashion Brand Shein Plans London Stock Exchange IPO
Fast fashion brand Shein which had earlier planned to launch an IPO on the Chinese stock exchange has changed plans and will now submit an IPO application to the London Stock Exchange.
Earlier this year, the China Securities Regulatory Commission advised Shein against an IPO in the United States due to the company’s supply chain issues.
Shein relocated its headquarters from Nanjing, China, to Singapore in 2022, but still requires approval from the China Securities Regulatory Commission for its offshore listing.
Additionally, Shein’s planned IPO in London will require approval from Beijing, aligning with China’s latest regulations regarding overseas listings of Chinese companies.
However, Shein is more inclined towards New York as its listing venue and intends to maintain the validity of its SEC application pending a change in stance from US regulatory authorities.
After the London IPO, Shein may pursue a secondary listing in New York when the political environment in the United States is more favourable.
The brand launches up to 10,000 new apparel designs on its website daily and sells them at very low prices. The brand doesn’t make these garments in large quantities and produces just a few hundreds.
Shein is under scrutiny in several countries on environmental impact of its garments, which encourages customers to buy and throw garments several times in a year which ultimately land up in landfills.
