Shein files for Hong Kong IPO to save London listing: FT
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The news: Fast-fashion retailer Shein confidentially filed for an initial public offering in Hong Kong, the FT reports, in efforts to expediate its planned London listing.
The context: The masthead reports that Shein’s decision to privately file a draft prospectus last week with the Hong Kong exchange was designed to pressure UK regulators to approve its listing in London.
Shein has also sought approval from the China Securities Regulatory Commission (CSRC), according to FT sources.
Shein filed for an IPO in London at the beginning of 2024, but has yet to receive approval from the regulator. Regulators in both countries have failed to agree on the wording of the risk disclosure provision in the IPO prospectus, relating to Shein’s supply chain exposure to the Xinjiang region where China has been accused of human rights abuses.
The UK’s Financial Conduct Authority approved a version of the Shein prospectus earlier this year, which was rejected by the CSRC. News about Shein trying for a Hong Kong listing broke in May.
The numbers: The London Stock Exchange is struggling to attract and retain listings and a Shein IPO would the largest for the bourse in years.
Earlier this year, Shein was reportedly set to cut its valuation for a potential UK listing to around USD50 billion ($77.6 billion), a sharp drop on the USD66 billion it had achieved in a funding round in 2023.
The source: FT
