Shein reported to be eyeing London listing as New York IPO plans stall

Chinese fast fashion behemoth Shein is reported to be eyeing a blockbuster listing on the London Stock Exchange after plans to float in New York have hit a stumbling block.

While there is no certainty it will choose the UK capital over New York at this stage, Bloomberg has reported that Shein is deterred from the US listing due to onerous regulations and its belief that the US Securities and Exchange Commission (SEC) may not approve its listing. Its exploration of a London listing is said to be in the early stages.

Founded in China but headquartered in Singapore, Shein has faced some high-profile resistance in the US to its potential listing in New York, for which it filed documents in November.

Senator Marco Rubio is among those to call upon the SEC to block its listing, saying Shein needs to disclose more information about its operations in China while a member of Congress has previously called for an investigation into its cotton sourcing practices in Xinjiang.

Listings in New York for Chinese companies are reportedly rare, while the London Stock Exchange is in need of a high profile float to boost its fortunes. According to Bloomberg, around £790m 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. But speculation that it could be a serious contender have now gathered pace. Should it go ahead, the Shein float would be one of the biggest IPOs in the UK capital 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.

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.

At the time of the acquisition Frasers CEO Michael Murray suggested there would be further collaboration between the two businesses. "We are also excited about the ongoing discussions around further collaboration between Frasers Group and Shein," he said.