Shein mulls London IPO after scrutiny from US regulators

The news: Chinese fast fashion label Shein, is reportedly considering shifting its planned initial public offering from New York to London after facing significant regulatory scrutiny from US regulators.

The numbers: The Singapore-based company has not revealed the size of the IPO, but the company was estimated to be worth USD60 billion ($91.5 billion) in mid-2023 and Bloomberg has reported it was targeting up to USD90 billion in the float.

The context: Should the listing shift to the UK, it would be a huge boost for the London market after just USD1 billion was raised in the country through IPOs in 2023. According to Sky News, UK Chancellor Jeremy Hunt reportedly met with the executive chair of Shein, Donald Tang, earlier this month in efforts to lure the behemoth to UK shores. The listing could become the London Stock Exchange’s second-largest IPO in history, behind the 2011 debut of Glencore International.

The LSE is suffering from a wave of firms opting to float elsewhere. Arm Holdings’ decision to IPO on the NASDAQ over the LSE last year, despite lobbying from the UK government, was a notable spurn.