Doubts are starting to arise about whether Shein’s highly anticipated stock listing in London will actually take place, based on reports from China and the UK. The Financial Times (FT) remains optimistic that the listing could still move forward despite the uncertainty. Originally, Shein had planned to list in New York, but due to the unfavorable climate towards Chinese companies, the London Stock Exchange was seen as a more feasible option.
However, the South China Morning Post (SCMP) recently reported that the potential £50 billion IPO could face obstacles as some major shareholders are growing hesitant. The 15-year-old company, founded in China and currently based in Singapore, still conducts the majority of its operations in China. SCMP mentioned that “some major shareholders have become impatient with the company’s fundraising efforts and are requesting Shein to consider buying back their shares.”
Private trading of shares is ongoing amid concerns about the limited returns expected from a London IPO. Despite the lack of identification of the concerned investors, it is evident that there are reservations surrounding the planned listing. Shein, initially backed by Jafco Asia and later by several other firms, has received substantial funding throughout its growth.
London was chosen as the alternative to New York for the listing, although this decision was met with skepticism due to London’s diminished standing as a top IPO destination globally. Furthermore, Shein’s corporate structure has faced legal challenges in the UK, and negative publicity surrounding its business practices has added to the uncertainty.
The British Fashion Council has expressed unease about the potential listing, highlighting industry concerns. This Is Money also highlighted worries in Beijing regarding the portrayal of Shein in Britain, given its manufacturing operations in China and the need for approval from Beijing regulators to list in London.
Despite these challenges, the FT revealed that Shein has submitted confidential paperwork for the IPO with the markets regulator. The approval from Beijing remains a crucial step, and the FT suggested that Hong Kong could serve as an alternative listing venue if London falls through.
As of now, none of the parties involved have provided official comments on the unfolding situation. The future of Shein’s London listing remains uncertain, with various factors influencing the final decision. Investors and industry observers continue to monitor developments closely to see if the highly anticipated IPO will come to fruition.
