“London IPO Plans by Shein Face Obstacles Amid US Listing Challenges”

Shein, the popular online fashion retailer, is facing unexpected regulatory obstacles and resistance from US politicians as it gears up for its initial public offering (IPO). Despite initially aiming for a listing in New York, Shein is now intensifying plans for a London IPO, according to insider sources.

The Singapore-based company, which originated in China but is now headquartered in Singapore, is reportedly in talks to file with the London Stock Exchange (LSE) and inform China’s securities regulator about the change in listing venue. Sources suggest that Shein has been in discussions with fund managers in London to explore the possibility of a listing on the LSE.

Although Shein’s US IPO plans are still on the table, challenges in navigating regulatory hurdles in both China and the US have prompted the company to consider a London listing as a viable alternative. Issues such as supply chain concerns and complaints from US politicians about alleged labor violations have contributed to the uncertainties surrounding Shein’s IPO.

Senator Marco Rubio has even called on the US Securities and Exchange Commission (SEC) to delay Shein’s IPO in New York, citing the need for more transparency regarding the company’s business practices in China. The SEC has reportedly not yet advanced Shein’s IPO filing, indicating a complex and fragile application process.

In the event that Shein successfully goes public in London, the company might also pursue a secondary listing in New York in the future, depending on the regulatory environment. This potential IPO could be one of the largest worldwide this year, signaling a shift in the global IPO landscape.

As businesses, such as UK chip designer Arm, choose to list in New York to enhance liquidity, Shein’s decision to consider a London IPO could mark a significant moment for the LSE. With only a few IPOs taking place in London this year, Shein’s listing could bring new opportunities and momentum to the European market.