Online fashion retailer Shein plans to show up in Europe ahead of its London IPO, sources say

Chinese online fashion retailer Shein is progressing towards its London Initial Public Offering (IPO) by holding informal investor meetings next week, according to three sources familiar with the matter. The company is awaiting UK regulatory approval as it continues to push ahead with its preparations.

Europe-Focused Investor Meetings

Shein, which is headquartered in Singapore, plans to hold these meetings primarily in Europe. This is intended to gauge investor interest in the region. One of the sources stated that these meetings aim to assess the appetite for the offering, but the sources requested anonymity as they were not authorized to speak publicly. A spokesperson for Shein declined to comment.

Confidential UK IPO Filing

In early June, Shein submitted confidential documents to the UK market regulator, marking the beginning of its potential listing process, which could be completed by the end of the year. Valued at $66 billion after a funding round last year, Shein turned its focus to London after initial plans for a New York listing faced opposition from US lawmakers.

US IPO Plans Stalled Due to Regulatory Concerns

Last November, Shein secretly filed for an IPO in the United States, while simultaneously seeking approval from the China Securities Regulatory Commission (CSRC). However, Chinese regulators informed Shein earlier this year that they would not endorse a US listing due to the company’s supply chain challenges.

Regulatory Scrutiny on Shein’s Operations

As Shein moves toward its public market debut, the company has faced increased scrutiny over its employee practices and environmental records. These concerns have become focal points as Shein works to secure regulatory approvals.

Awaiting Regulatory Approval

Shein is aiming for an IPO in the current quarter, subject to the Financial Conduct Authority’s approval, according to a separate source. The company is also seeking approval from the CSRC. As of Thursday, Shein had not appeared on the CSRC’s list of approved foreign IPO applicants.

Conclusion

Shein’s journey toward a public listing is fraught with regulatory hurdles, both in the UK and China. As it prepares for its IPO, the retailer will need to address concerns related to its operations, while testing investor appetite in Europe. The market eagerly awaits further developments as Shein moves closer to its public market debut.