"Chinese Fashion Giant Shein Heads to London Instead of New York... Secretly Submits IPO Documents"

Chinese fast fashion company Shein, which had been pursuing a listing on the New York Stock Exchange, is ultimately proceeding with its initial public offering (IPO) process in London, UK.

[Image source=Reuters Yonhap News]

Bloomberg reported on the 24th (local time), citing sources, that Shein recently submitted related documents confidentially to UK regulators for a London Stock Exchange listing. The targeted IPO timing is the second half of the year. The company's valuation upon listing is estimated to be around ?50 billion ($63.3 billion, approximately 88 trillion KRW). If successful, this would be the largest IPO on the London Stock Exchange in over a decade.

Originally, Shein had been pursuing a listing on the New York Stock Exchange since last year, but due to ongoing US-China tensions and forced labor issues, it judged that the likelihood of US regulatory approval for the IPO was low and turned its attention to London. However, uncertainty remains as it is still awaiting approval from Chinese regulators. A source stated, "The goal is the second half of the year, but there is no guarantee that the IPO will definitely proceed in London."

Known as the "Chinese version of Uniqlo," Shein rapidly grew by offering around 6,000 items daily at prices cheaper than competitors, targeting customers sensitive to SNS trends during the pandemic. It has recently also made a full-scale entry into the Korean market.

Shein's listing is expected to be a positive factor for the London Stock Exchange. Bloomberg evaluated, "It will bring a victory to London, which missed the revival of IPOs in the European region earlier this year," and added, "It could potentially help recover market value lost to companies choosing to list in New York instead of London." Previously, semiconductor design company ARM, headquartered in Cambridge, chose New York over London for its listing.