UK Chancellor Jeremy Hunt met the chairman of the online retail giant and talked about its potential listing in the UK.
ADVERTISEMENTFacing difficulties in the US to go public, online retail giant Shein could provide the biggest-ever initial public offering (IPO) on the London Stock Exchange (LSE), the market fighting to get back its old fame.
Shein is exploring a London listing because it believes it is unlikely that the US Securities and Exchange Commission will approve its initial public offering (IPO), according to Bloomberg, citing people familiar with the matter.
Founded in China, and later headquartered in Singapore, Shein applied to go public in the US in November 2023.
However, US lawmakers such as Florida Senator Marco Rubio were very vocal about asking the US Securities and Exchange Commission (SEC) to block the listing unless the company, accused of violating human rights, discloses more about its operations in China.
Shein was accused of using forced labour in its supply chain in the Xinjiang region.
The company denied any wrongdoing and said it has a zero-tolerance policy for forced labour.
Meanwhile, the retail giant also faces scrutiny from the Chinese authorities in the wake of its demand to go public in the US.
Shein could carry out the biggest-ever IPO in London
The company is now considering launching the initial public offering (IPO) in London, according to Bloomberg, citing people with knowledge of the matter.
Sky News also reported that UK Chancellor Jeremy Hunt has held talks with the company’s chairman Donald Tang about the potential London IPO.
In its application, the ultra-fast fashion brand, selling in more than 150 countries across the world, aimed for a valuation of around $90 billion, according to Bloomberg.
So far the biggest-ever company listing on the LSE was trading and mining company Glencore International with a market cap of £36.34 billion ($45.99 billion).
Analysts agree that the fashion giant’s IPO would be a huge victory for the stock market in the British capital, which has lost some of its fame as a global financial centre after Brexit.
One of the latest examples of this was when earlier this month, the shareholders of one of Europe’s biggest travel operators, Tui, decided to delist in London in favour of going public in Germany. Another big blow was last year when the Cambridge-based Arm Ltd decided to go public in the US.
The LSE and Shein declined to comment. Britain’s finance ministry said to Reuters, that “the government does not comment on individual companies – it is for individual firms to decide where to list.”