The Chinese fast-fashion brand Shein is stepping up preparations for a London IPO listing. Shein attempted to enter the New York Stock Exchange (NYSE) but faced hurdles from US lawmakers, two people with knowledge of the matter said.
The online fashion retailer plans to file with the London Stock Exchange (LSE) as early as this month, said one of them. The fashion brand plans to inform China’s securities regulator about the change of the initial public offering (IPO) venue.
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The China-based fashion retailer is in touch with London-based fund managers and conducted introductory meetings about the listing, reported Reuters. However, both Shein and the LSE declined to comment about the upcoming IPO listing. In addition, China’s Securities Regulatory Commission (CSRC) declined to comment on the development.
After NYSE Listing Failure, Shein Eyes London Stock Exchange (LSE) IPO
Despite facing hurdles from the NYSE, Shein is still considering floating an IPO in the future. The brand had confidentially filed for an IPO with the U.S. Securities and Exchange Commission (SEC) in November last year. It had also approached the CSRC to seek China’s nod in the same month for the IPO.
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However, the Chinese brand is struggling to clear regulatory hurdles both in the US and China. Lawmakers in the US are not keen on allowing Shein to list an IPO on the NYSE. US lawmakers allege that Shein indulged in labor malpractices and fraudulent lawsuits from competitors.
Reports state that once Shein successfully floats the London IPO, it could reapply for the US NYSE stock market. The SEC could once again scrutinize the Chinese firm as US lawmakers are not keen on allowing it to function in the NYSE.
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Shein sells affordable fashion wear to over 150 countries relying on 5,400 third-party contract manufacturers from China. The firm was valued at $66 billion in fundraising last year.