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Online fast-fashion giant Shein is exploring multiple avenues for its potential initial public offering (IPO), keeping a Hong Kong listing as a fallback option despite filing for a London listing.
This move comes amidst strong opposition from human rights groups and scrutiny from lawmakers over Shein’s labor practices.
London Listing Efforts:
Shein confidentially filed papers with Britain’s markets regulator in June, signaling the start of the process for a potential London listing later this year.
If the process proceeds smoothly, Shein could go public in London within the year.
Controversy and Opposition:
Human rights groups in the U.K., including Amnesty International U.K., have strongly opposed Shein’s potential London IPO, citing concerns over the company’s labor practices. Amnesty International U.K. labeled the potential IPO as a “badge of shame” for the London Stock Exchange (LSE).
Senior British lawmakers have also questioned Shein’s suitability for listing, calling for greater scrutiny of its labor practices, supply chain management, and use of import tax exemptions.
Hong Kong as a Fallback Option:
Despite focusing on a London listing, Shein is keeping the option of listing in Hong Kong alive. The Financial Times reported that Shein’s plans remain fluid, and there is no certainty that the company will ultimately choose London, even if it is currently the primary focus.
Background and Valuation:
Shein was valued at $66 billion during a fundraising round last year. Earlier this year, it began exploring a listing on the London Stock Exchange. This followed the abandonment of its original plan to list in New York due to opposition from U.S. lawmakers.
U.S. lawmakers opposed Shein’s New York listing plan primarily due to concerns over the company’s labor practices and other regulatory issues.
