Shein may hold an IPO in London – Kommersant
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Chinese retailer Shein has changed its mind about holding an initial public offering in New York and now wants to hold an IPO in London, reports Bloomberg with reference to own sources.
As previously reported, Shein in the middle of last year filed documents for an IPO in New York. At the same time, he submitted them confidentially. Shein has never officially announced its intention to go public.
Back in May 2023, a group of members of the US Congress from both parties called SEC suspends preparations for Shein’s initial public offering. Congressmen say they need to first make sure that Shein, which sells fashion clothing around the world, does not use forced labor from Uyghurs.
According to Bloomberg sources, the Chinese retailer continues to seek permission from the SEC to conduct an IPO in the United States. But the company believes that it is unlikely that this resolution will be achieved in the end. Therefore, the retailer began preparing to submit an application for an IPO on the London Stock Exchange. At the same time, as sources note, Shein may opt for other sites, such as Hong Kong or Singapore.
The retailer was created in China in 2008, first as ZZKKO, in 2012 it received its current name, and in 2022, for regulatory and financial reasons, it moved its head office to Singapore. In May 2022, following the results of the next round of financing, Shein’s value was estimated at $100 billion, the company was called the world’s largest fashion retailer. However, in May 2023, the company’s value based on the results of a new round of financing exceeded only $60 billion.
If the IPO does take place in the United States, Shein will become one of the most valuable public Chinese companies to list its securities on the American stock exchange. Now this is the taxi service Didi Global, which in 2021 raised $4.4 billion during its IPO and was valued at $68 billion. At the same time, Didi was forced to leave the New York Stock Exchange in June 2022 due to pressure from the Chinese authorities on the country’s tech giants.
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