Shein, China-Based Fashion Retailer, to File for London IPO
Shein, the China-founded online fast-fashion retailer, is set to file for an IPO in London. The company aims to raise over 1 billion pounds and could be valued at around 50 billion pounds. Shein's decision to move its IPO destination from New York to London is due to US-China tensions.
Shein, founded by Chinese entrepreneur Sky Xu Yangtian, has gained popularity in the West but remains relatively unknown in China. With aspirations to raise over 1 billion pounds (US$1.28 billion) from the IPO, Shein could potentially be valued at around 50 billion pounds, making it one of the most valuable China-originated unicorns after ByteDance, the parent company of TikTok and Douyin.
The decision to move the IPO destination from New York to London comes amidst escalating tensions between the US and China. Shein's executive chairman, Donald Tang, explained that the company's change of domicile to Singapore in 2021 was not enough to appease US lawmakers. Shein has enlisted the services of financial advisers Goldman Sachs, JP Morgan, and Morgan Stanley for the IPO.
Shein operates in more than 150 countries and regions worldwide, catering to a global customer base. Interestingly, the company's shopping site does not have a simplified Chinese version for mainland consumers. While Shein has a significant sourcing center in Guangzhou, capital of Guangdong province, local governments in China are hopeful that the retailer will help boost exports. Guangzhou's Baiyun district has been actively working to connect Shein with local clothing, leather, and cosmetics exporters, while a delegation from Sanshui district in Foshan city has recommended businesses to open shops on Shein.
It remains unclear whether Shein's overseas IPO application will require approval from mainland regulators such as the Cyberspace Administration of China or the China Securities Regulatory Commission (CSRC). According to rules introduced last year, companies seeking to list overseas must register their intention with the CSRC and obtain approval from their industry regulator if most of their employees are Chinese or based in China.
Shein, the China-founded online fast-fashion retailer, is set to file for an IPO in London.
The company aims to raise over 1 billion pounds and could be valued at around 50 billion pounds.
Shein's decision to move its IPO destination from New York to London is due to US-China tensions.
Source: SCMP