ALBAWABA - Online apparel store Shein has submitted documentation to regulators in the United Kingdom in a discreet manner for the sake of an anticipated public listing in London, Bloomberg reports citing familiar sources, possibly making it the largest London IPO in the last decade.
The steps being taken are not conclusive proof that an initial public offering (IPO) is close by, according to the sources, and although the goal is to list the firm in the second half of the year, Shen still favors a US listing, according to CNN, especially when there is no certainty that the firm would continue with a London issue.
Despite the fact that it was first established in China, Shein has made significant efforts to position itself as an international corporation, CNN reports. Even with the relocation of its main headquarters to Singapore in 2021, Shein still has the bigger part of its supply chain based in China, coupled with its need for Chinese regulator approvals for an IPO listing in the States, it seems that the US still consider it a Chinese firm.
Shein would be able to officially submit an intention to float on the London stock exchange if it were to get approval from both the Financial Conduct Authority and the Competition and Markets Regulatory Commission, according to Reuters, possibly assisting London in regaining some of the market value that it has been losing as a result of corporations moving their main listings to New York.
Despite the fact that Shein has appointed a new global head of ESG who has been committed to improving the firm's image and boosting its sustainability, it is possible that the corporation still needs to convince investors who are increasingly focusing on social, cultural and economic concerns.
