Shein expected to float £71 billion listing on London Stock Exchange next week

Shein, the fashion giant that sells dresses online for as low as £5, is reportedly set to launch its stock market float in London rather than the US as soon as next week.

Reports suggest the fast fashion giant is leaning towards placing its £71 billion listing on the London Stock Exchange, according to This is Money.

Shein's Chairman, Donald Tang, met with Chancellor Jeremy Hunt to discuss the potential float last month.

The latest threat by the US Congress to ban Chinese social media site TikTok is thought to have been the final kicker in moving away from a New York listing, leaving less risk in the UK. Shein has faced high-profile resistance in the US to its potential listing in New York, for which it filed documents in November.

Listings in New York for Chinese companies are reportedly rare, while the London Stock Exchange is craving a high-profile float to boost its fortunes.

According to Bloomberg, around £790 million was raised in the UK via IPOs last year, which is the lowest level in decades. There have been calls for the UK to remain the home for Chinese company listings, while relations between the US and China have cooled in recent years.

It was initially reported that Shein was in talks with London Stock Exchange bosses at the end of last year. Should it go ahead next week, the Shein float would be one of the biggest blockbuster IPOs in the UK in many years.

Established in 2012, the business has mushroomed due to its cheap clothing and appeal to Gen Z consumers, and is now valued at around £53.8 billion. But the e-tailer has faced backlash for its environmental impact and treatment of workers in China.

Shein has already made meaningful ties to the UK with plans to open a hub in Manchester, which is the home of the UK fast fashion industry housing HQs for the likes of Boohoo and In The Style. It also acquired Manchester-based fast fashion brand Missguided from Frasers Group in October last year, marking its first UK acquisition.