Shein set to file for £50bn London listing, according to reports
How much could Shein potentially be valued at with its initial public offering (IPO) in London?
Shein's potential valuation for its initial public offering (IPO) in London could be around $66 billion (£51.7 billion). The company has stepped up its preparations for a share sale in the UK after facing regulatory hurdles and intense scrutiny in the US. A confidential filing with the UK's Financial Conduct Authority could pave the way for a major London stock market share sale.
What allegations of unethical business practices has Shein been linked to in the past?
Shein has been linked to several allegations of unethical business practices in the past. These include:
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Forced labor allegations: A group of US lawmakers called for Shein to be investigated over claims that Uyghur forced labor is used to make some of the clothes it sells. The company has responded by stating that it has "zero tolerance for forced labor".
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Excessive overtime: A report by Swiss advocacy group Public Eye found that workers for some of Shein's suppliers were working 75 hours a week, despite the company promising to improve conditions. Shein has said it is "working hard" to address these issues and has made "significant progress on enhancing conditions".
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Copyright infringement and racketeering: Shein is facing a lawsuit alleging that the company engaged in copyright infringement and racketeering5. The lawsuit claims that Shein stole the intellectual property of three fashion designers and used a "byzantine shell game of a corporate structure" to avoid lawsuits.
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Environmental impact: Shein has been criticized for its environmental impact, with a report by Greenpeace Germany finding that 32% of the 47 Shein products it tested contained concerning levels of hazardous chemicals2.
These allegations have led to increased scrutiny of Shein's business practices and have contributed to the company facing regulatory hurdles in the US and other countries.
Why has Shein chosen London for its IPO over continuing its efforts for a listing in New York?
Shein, the online fast-fashion group, is considering a London IPO as a backup option for a blockbuster flotation if US regulators block its preferred choice of a New York IPO due to its ties to China3. The company has faced regulatory hurdles and intense scrutiny in the US, with concerns about its links to China as tensions between Washington and Beijing intensify. Shein has also been linked to unethical business practices, including forced labor allegations. As a result, the company has decided to explore the London option as it has judged it unlikely that the US Securities and Exchange Commission will approve its IPO.