Shein, the online fast fashion firm, is reportedly preparing to file paperwork for a potential London share listing, possibly as soon as this week. An initial public offering (IPO) could value the company at approximately $66 billion (£51.7 billion).
Founded in China and now headquartered in Singapore, Shein has intensified its preparations for a UK share sale after encountering regulatory challenges and scrutiny in the US. A Shein spokesperson declined to comment on the matter.
The company has previously faced allegations of unethical business practices, including forced labor. A confidential filing with the UK’s Financial Conduct Authority may set the stage for a significant London stock market share sale. Although this filing could occur this week, Sky News, which first reported the story, mentioned it might be postponed to later in June.
Colleen McHugh, chief investment officer at Wealthify, told the BBC’s Today programme, “This could be big news for the London stock market – there haven’t exactly been many IPOs this year.”
In January, Shein filed paperwork for a potential New York listing with the Securities and Exchange Commission (SEC), according to Reuters. However, the company has faced opposition from US lawmakers due to concerns about its ties to China amidst escalating tensions between Washington and Beijing. Last year, a group of US lawmakers called for an investigation into Shein over claims that Uyghur forced labor was used to produce some of its clothing. “We have zero tolerance for forced labor.”
Shein has also come under scrutiny outside the US amid speculation about a potential London listing. A recent report indicated that workers for some of Shein’s suppliers continue to work 75 hours a week, despite the company’s promises to improve conditions. The Swiss advocacy group Public Eye conducted a new investigation, interviewing 13 employees from six factories in China supplying Shein. The group found that excessive overtime remained common.
Shein stated to the BBC that it is “working hard” to address the issues raised by the Public Eye report and has made “significant progress on enhancing conditions.”
Referring to the allegations regarding Shein’s labor and sustainability practices, Ms. McHugh commented, “It’ll be down to the regulator as to whether or not the listing can go ahead here [in the UK] – but it won’t be without controversy.”
Shein has experienced rapid growth since its founding in 2008, benefiting from the boom in online shopping during the Covid pandemic lockdowns. Its strategy of offering a wide range of affordable clothing, supported by social media campaigns on Instagram, TikTok, and other platforms, has made it one of the world’s largest fashion retailers. Shein relies on thousands of third-party suppliers and contract manufacturers near its headquarters in Guangzhou, enabling the company to introduce new items in weeks rather than months.
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