Shein mulls London IPO after pressure from US regulators

Chinese fast fashion giant Shein is considering switching its blockbuster IPO plans from New York to London in what would be a major boon to the beleaguered London Stock Exchange, according to reports.

The Gen-Z favourite has reportedly baulked at onerous US regulation for listed firms and is now mulling a debut in London, according to Bloomberg, though no final decision has been made.

While it is still said to be working on its US plans, the firm is reportedly expecting the US Securities and Exchange Commission to ultimately block its plans for a New York IPO.

The firm was founded in China but shifted its headquarters to Singapore for regulatory reasons in 2022.

A London float would be a major boost to the London Stock Exchange after a barren period on the public markets.

Just 23 firms floated on the London Stock Exchange’s two markets in 2023, a 49 per cent slide from the 45 registered in an already quiet 2022, EY found in its latest IPO Eye report.

London has also been dealt a series of blows by firms swapping their listings for other exchanges or exploring dual listings across the Atlantic. Gambling firm Flutter recently shifted its primary listing to the US while trave firm Tui ditched its dual listing in London for Frankfurt.

Chipmaker Arm, which snubbed London to float on the Nasdaq in New York last year, has also exploded in value in recent months.

Bosses at Shein reportedly met with executives at the London Stock Exchange last year. If the firm was to change its plans to list in London, it would reportedly need to file for a new authorisation with the Chinese regulator. 

The US listing plans had unnerved US lawmakers due to the company’s ties to China. Senator Marco Rubio wrote to the SEC earlier this month to warn that the company’s China operations and supply chain mean it “is subject to the whim of the Chinese government, and by extension the Chinese Communist Party (CCP)”. 

“In short, Shein is not a “global” company. It is a China-based company,” he said.

Shein was contacted for comment.