According to sources cited by Reuters, Chinese fast-fashion giant Shein Group is preparing for an investor roadshow ahead of a potential initial public offering (IPO) in London.
The company has been discussing its listing options with advisers, though no definitive decisions have been made regarding the exact timing or size of the IPO.
Shein is expected to use the upcoming roadshows to assess investor interest and provide greater transparency on its financials as part of the process.
Shein is targeting a London IPO and is preparing to hold informal investor meetings across Europe to gauge interest. The company aims to launch its IPO within the current quarter, contingent upon the UK’s Financial Conduct Authority (FCA) approval.
Originally, Shein had planned for a U.S. listing but shifted to London due to regulatory challenges in both the U.S. and China.
If all goes according to plan, Shein’s IPO could provide a significant boost to London’s capital markets, which have seen a relatively slow year for new listings. The company was valued at around $66 billion in its latest fundraising round, and analysts believe it is aiming for a similar valuation through the IPO
Shein is reportedly targeting a $64 billion valuation for its potential public listing, which could make it one of the largest IPOs in London’s history. This comes at a challenging time for the London Stock Exchange, which has seen a dearth of blockbuster IPOs in recent years, alongside several high-profile company exits.
However, Shein’s possible listing in London has sparked significant controversy due to allegations of forced labor within its supply chain. The fast-fashion giant, known for its strong online presence, was valued at $66 billion earlier this year in a fundraising round. Although Shein has not officially confirmed the IPO, insiders indicate that preparations are moving forward.
In June, the UK charity Stop Uyghur Genocide, supported by the human rights law firm Leigh Day, urged the Financial Conduct Authority (FCA) to block any listing of Shein on the London capital markets due to these labor concerns. In August, Shein disclosed several instances of child labor within its supply chain, intensifying the scrutiny surrounding the company’s operations.
