Shein is exploring ways to adjust UK listing rules to facilitate its London IPO. The fashion retailer seeks to avoid the 10% public sale requirement for their shares.
- This move, if approved, would mark a first for London market regulations introduced in 2021.
- A 10% share flotation would value Shein’s IPO at £5.20 billion.
- Shein is awaiting the UK’s financial regulatory approval amid supply chain concerns.
- The UK’s Financial Conduct Authority is reviewing Shein’s supply chain practices and potential legal risks.
Shein is actively seeking modifications to the UK listing rules that require a minimum of 10% of its shares to be sold publicly in a planned London Initial Public Offering (IPO). According to insiders, this strategic approach aims to simplify Shein’s entry into the London market. If successful, it will be the first instance of a company being permitted to list less than 10% of shares under newly established rules in 2021.
The intended 10% flotation of Shein’s shares would position the IPO’s valuation at a significant £5.20 billion, approximately $6.6 billion. This valuation underscores Shein’s substantial market presence and potential investment appeal.
Currently, Shein awaits approval from the UK’s Financial Conduct Authority (FCA), which is thoroughly examining the company’s listing proposal. This review includes scrutiny over Shein’s supply chain management and potential legal liabilities, prompted by concerns from advocacy groups focusing on supply chain transparency and ethical practices.
Challenges presented by these advocacy groups, particularly concerning treatment and transparency issues in the supply chain, have become central to Shein’s listing evaluation. The scrutiny reflects broader regulatory concerns over corporate responsibility and ethical governance within international supply chains.
Shein’s pursuit of a modified IPO listing in London reflects its strategic adaptation to regulatory landscapes and market opportunities.
