Fast fashion retailer Shein confidentially files for London IPO as U.S. listing stalls
Why did Shein switch its IPO filing from the U.S. to London?
Shein switched its IPO filing from the U.S. to London due to mounting backlash and allegations of forced labor in its supply chain. The company faced concerns from American lawmakers and failed to win their support. A London offering could sidestep some of the expected hurdles and provide a smoother path for the IPO.
How did Shein's market presence change during the Covid-19 pandemic?
During the Covid-19 pandemic, Shein's market presence grew significantly as the company capitalized on the shift to online shopping. With millions of customers turning to e-commerce platforms while stuck at home, Shein's sales figures were turbocharged, and the company overtook Amazon to become the most downloaded shopping app in the US. The pandemic also accelerated Shein's sales growth, which skyrocketed by 250% in 2020, making it the biggest single brand online store in the world6.
What implications does Beijing's approval have on Shein's IPO plans?
Beijing's approval is crucial for Shein's IPO plans as it is required for the company to go public in the U.S. Shein has sought China's nod for its U.S. listing, but its filing in London doesn't mean that an IPO will happen there. Shein's vast supply chain in China and its need for Beijing's approval highlight the challenges faced by global companies with Chinese origins.