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Shein rumoured to sell shares to British public ahead of IPO

Chloe Burney
22 August 2024

Fast fashion giant, Shein, has been considering a £50 billion stock market flotation in London all year. In an unexpected turn, sources have now revealed that the retailer may sell shares directly to the British public.

In an unconventional move, the company is in the early stages of examining a possible sale to retail investors alongside City institutions, sources told The Telegraph.

Typically, companies sell large chunks of their stock to banks, pension funds and asset managers when they list on the stock market, with individual investors only able to buy shares on the open market once trading begins.

Bankers JP Morgan, Goldman Sachs and Morgan Stanley are understood to be running the rule over proposals to sell directly to the public. However, plans haven’t yet come to fruition and no decision has been made.

This means that Shein shares could be offered to its Gen Z customers or a broader range of retail investors.

The plans are being looked at as Shein considers whether to push ahead with a London listing. This comes after the retailer secretly filed papers with the UK’s market regulators in June. It has also filed paperwork with Chinese regulators.

Shein began to explore a listing on the London Stock Exchange back in May. The proposed listing by the company, which was founded in China and headquartered in Singapore, would be one of the largest deals for the London Stock Exchange in a decade. The stock market float could value the e-commerce giant at around $66 billion (£51.6 billion).

However, the float hasn't steered clear of controversy. The Mail on Sunday recently revealed that a series of criticisms from UK politicians, press and investors had rattled some in the upper echelons of the Chinese government. The publication also revealed the British Fashion Council’s concerns over the float. The council said the listing was a "significant concern" to the industry and that "questions remain" about its business practices.

In an attempt to ease concerns over Shein's tax loophole, which sees it ship cheap packages from factories in China globally to avoid additional taxes, the company is exploring plans for its first British warehouse.

Earlier this month, a Shein spokesperson told TheIndustry.fashion: "To support the growth of the business, Shein is actively exploring warehousing locations worldwide. However, Shein has no immediate plans to acquire warehouse space in the UK."

Shein has declined to comment.


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