Fashion giant Shein is expected to file documents with regulators in the coming weeks, moving closer to a £50 billion float in London.
The China-founded retailer, now headquartered in Singapore, is likely to ignite controversy with its decision to list in Britain.
High street leaders are reportedly lobbying ministers over Shein’s alleged use of tax loopholes, while the company is believed to be opting for a UK listing over New York due to US regulatory challenges for companies with ties to China.
According to Sky News, Shein, which owns the British fashion brand Missguided, is preparing to submit a prospectus to the Financial Conduct Authority as early as this week.
Some of the largest retailers in Britain and the USA have raised objections to the Singapore-headquartered company’s use of the ‘de minimis’ tax loophole. This loophole allows companies like Shein to ship products directly from Chinese warehouses without paying duty and certain taxes, provided the shipments are valued under £625 or $800.
Shein had initially considered a New York listing but encountered political and regulatory resistance. Reports indicate that the China Securities Regulatory Commission advised against a US IPO due to “supply chain issues.”
If Beijing approves, the London listing will proceed under the new rules for Chinese firms going public offshore. The Singapore-headquartered company can then file its application to join the London Stock Exchange.
If the listing proceeds, Shein would become one of the largest members of the FTSE 100.
