- Reuters reports that the Financial Conduct Authority has approved the IPO
Shein has reportedly been given the green light by the City watchdog for a long-awaited initial public offering on the London Stock Exchange.
It comes ten months after the fast fashion giant, which sold $38billion of clothes last year, confidentially filed an initial public offering to the FCA.
Regulators have delayed sanctioning the listing due to concerns about the company’s labour practices and a challenge by an organisation advocating on behalf of the Uyghur minority.
Shareholders also pressured Shein to slash its valuation from $50billion to around $30billion (£23.8billion) to ensure the IPO went ahead.
Reuters reports that Shein will still require approval from the China Securities Regulatory Commission before the IPO can proceed, but it has informed the body in recent weeks of the FCA’s consent.
Both Shein and the FCA declined requests for comment.
Results: Shein’s net profits slumped by almost 40 per cent to £792million in 2024
Founded in October 2008, Shein has expanded considerably since the Covid-19 pandemic, when restrictions on physical stores led to a surge in online clothing sales.
Even after trading curbs ended, the group’s orders continued soaring, helped by its cheap products and an army of TikTok influencers promoting the brand.
However, the Singapore-based firm’s net profits slumped by almost 40 per cent to £792million in 2024 amid a problematic final quarter and stiff competition from fellow fashion retailer Temu.
Shein will also have to contend with President Donald Trump’s new tariff measures, including removing a ‘de minimis’ exemption that allowed packages worth under $800 to be shipped duty-free to the US.
Trump has also hiked the tariff on all Chinese goods imports to a staggering 125 per cent, blaming a ‘lack of respect’ from Beijing.
Shein’s products are primarily produced at thousands of factories across China, with other sites in Brazil and Turkey.
The company does not own any manufacturing sites but instead sources its products from third-party suppliers. Most of its goods are then shipped to shoppers by air in individually addressed packages.
Its potential listing marks a rare win for the London markets, which have struggled to attract new IPOs in recent years due to liquidity, valuation, and regulatory issues.
Just 18 firms debuted on the LSE in 2024, while 88 were delisted, according to Ernst & Young.
Among the high-profile departures were cybersecurity giant Darktrace and music rights investor Hipgnosis Songs Fund.
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Shein on course for London IPO after green light from City watchdog