July 20, 2024

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Shein confidentially files for London IPO

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Shein sign during its opening, at ABC Serrano, on 26 April, 2024 in Madrid, Spain. 

Alejandro Martinez Velez | Europa Press | Getty Images

Shein, the fast fashion giant with links to China, has confidentially filed for a public listing in London as it faces backlash in the U.S., a person familiar with the matter told CNBC.

The company had confidentially filed for a U.S. initial public offering in November but changed gears to London after it failed to win the support of American lawmakers. Elected officials in the U.S. have repeatedly expressed concerns about the use of forced labor in Shein’s supply chain and its use of a U.S. tax law exemption known as de minimis.

Shein would still prefer to go public in the U.S., sources previously told CNBC, and its filing in London doesn’t mean that an IPO will happen there. Shein had previously sought China’s approval to go public in the U.S. It’s unclear if Beijing has signed off on the London listing.

Shein, which was founded in China, has gone to great lengths to establish itself as a “global” company, moving its headquarters to Singapore in 2021. Still, the vast majority of its supply chain is still based in China, and the fact that it needed to seek Beijing’s approval to go public in the U.S. means regulators there view it as a Chinese company — and could exert control over its operations and data.

Shein’s London filing marks another twist in the company’s so-far long road to a public markets debut. It crashed onto the U.S. fashion scene during the Covid-19 pandemic and won over consumers with its ability to quickly offer the latest styles at rock bottom prices. It’s been a thorn in the side of U.S.-based competitors, which have ceded market share to the digital upstart and struggled to match its speed.

As Shein’s prominence in the U.S. grew, so did its ambitions to go public. It began waging a U.S. charm offensive as it sought to win the approval of lawmakers and the retail industry, but those efforts have not yet…

2024-06-24 09:26:06

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