British Chancellor of the Exchequer Jeremy Hunt has engaged in discussions with Shein’s Executive Chairman Donald Tang, with the Chinese-originated fast-fashion brand expressing interest in listing on the London Stock Exchange, as per a source from the UK government speaking to Reuters.
The proposed initial public offering (IPO) by Shein, renowned for its affordable fashion offerings spanning over 150 nations, could potentially become the second largest in the history of the London Stock Exchange, as reported by Sky News, citing insights from a capital markets banker.
Both the London Stock Exchange and Shein have refrained from making any comments on the matter.
In response, the British Treasury highlighted the reforms devised to enhance the UK’s appeal as a prime location for IPOs.
“The government refrains from commenting on individual companies – it is the prerogative of individual firms to determine their listing venue,” stated the treasury.
The prospect of Shein choosing London for its IPO could be viewed as a significant achievement for Britain, particularly amidst its challenges in attracting and retaining listed companies, a trend that has sparked concerns regarding London’s diminishing allure, partly attributed to Brexit.
Several notable companies, including British semiconductor designer Arm Holdings, have opted for listings in the United States, with Arm debuting on the Nasdaq in September.
Shein had previously confidentially filed for a public listing in the United States towards the end of last year, as reported by Reuters, citing insights from two familiar sources. However, the company is now exploring alternative avenues.
While the specifics regarding the size of the deal or the valuation at IPO remain undetermined, Bloomberg reported a potential target of up to $90 billion for the offering.