The logo of fast e-commerce company Shein outside its office in Guangzhou in southern China’s Guangdong province.
Jade Gao | Afp | Getty Images
Shein is set to hold informal investor meetings in the coming weeks for a public offering in London, three sources with knowledge of the matter said, moving ahead with arrangements pending UK regulatory approval.
The China-based retailer plans to hold informal roadshows mainly across Europe, one of the sources said, where the IPO-bound company is fielding questions from major investors and gauging their willingness to invest.
The sources declined to be identified as they are not authorized to speak to the media.
Singapore headquarters spokesman Shein declined to comment.
Shein filed confidential documents with Britain’s markets regulator in early June, starting the process of a potential listing for the London-based company later this year, Reuters reported in June, citing sources.
The company, valued at $66 billion last year during a fundraising round, began considering a London IPO earlier this year after its initial New York plan fell through following opposition from US lawmakers.
Shein is working to launch the program this quarter, subject to approval from Britain’s Financial Conduct Authority, a separate source familiar with the matter said.
As Shein, known for his $5 tops and $10 dresses, has moved upmarket, his labor and environmental record has come under intense scrutiny.
The fast-growing company’s ability to convince major global institutional investors of its business viability and financial health will determine whether it can match the $66 billion valuation it earned last year.
Shein’s preparations for a possible listing in London mark a departure from its long-running US IPO plan, which has faced setbacks at home and abroad, Reuters reported.
The group privately filed the IPO with the US Securities and Exchange Commission in November and simultaneously sought approval from China’s securities regulator, the sources said.
However, the China Securities Regulatory Commission informed Shein earlier this year that it would not approve a US IPO due to the company’s supply chain problems, Reuters reported.
Shein’s plan to list shares in London still needs CSRC approval, and it is not clear whether the company has received any guidance from the Chinese regulator.
As of Thursday, a review of the CSRC website, which publishes offshore IPO approvals, did not mention Shein.
Shein’s financial figures are not publicly available, but Bernstein analysts in April estimated its profit more than doubled last year to $ 2 billion from $ 700 million, which gave a profit of 4.4% of sales.
The Shein share offering will be a boost to London’s dying IPO market.
The UK had nine new listings this year compared to 18 by 2023, according to Dealogic data. It lags behind other European countries, and is ranked 10th among listing destinations in Europe, the Middle East and Africa in terms of IPO value.
Britain’s market watchdog this summer fast-tracked new rules to boost and encourage companies listed on the London Stock Exchange as they sought to catch up with New York and the European Union after Brexit.
Shein is facing the solace of several European governments, with Germany, Austria, Denmark, France and the Netherlands writing a joint letter last week asking European Union authorities to enforce the bloc’s standards on social media and expressing their support for revoking the exemption. packages cost less than 150 euros.
Eliminating such “de minimis” tax breaks would hurt Shein’s profits, investors said.