Doubts are starting to arise regarding whether Shein’s anticipated share listing in London will actually take place, as per reports from China and the UK. The original plan was for the company to list in New York, but due to unfavorable conditions for China-related companies in the US, London became the preferred option.
However, the South China Morning Post (SCMP) recently reported that the potential £50 billion IPO might face obstacles as some major shareholders are becoming hesitant. The company, which is 15 years old and Singapore-based but founded in China, is experiencing some pushback from investors regarding its fundraising strategies. Some shareholders are even considering selling their shares back to Shein.
Private trading of Shein’s shares is still ongoing, with concerns over the expected returns from a London IPO. Despite the uncertainties, Shein has submitted confidential paperwork for the IPO with the markets regulator, according to the Financial Times. It’s worth noting that Beijing’s approval is necessary for the listing to proceed, and Hong Kong could be another option if London falls through.
The company’s funding history includes investments from various entities such as Jafco Asia, IDG Capital, Greenwoods Asset Management, Mubadala Investment Company, and others, injecting over $4 billion across six funding rounds. The decision to choose London as the listing destination raised eyebrows, given the city’s diminished stature in the global IPO landscape and the legal challenges Shein has faced in the UK.
Moreover, Shein’s business practices have come under scrutiny, leading to concerns within the British Fashion Council and Beijing regulators. The portrayal of Shein in Britain has raised red flags in China, where the company’s manufacturing operations are based. Despite these challenges, Shein seems determined to move forward with its IPO plans.
As the situation continues to unfold, industry experts are closely monitoring Shein’s next steps and the potential impact of its listing on the market. The uncertainties surrounding the IPO only add to the intrigue surrounding one of the most highly anticipated public offerings in recent times.