The logo outside the office of fast fashion e-commerce company Shein in Guangzhou, southern China’s Guangdong province.
Jade Gao | AFP | Getty Images
Three people familiar with the matter said that Shane is planning to hold private investor meetings in the coming weeks for its planned initial public offering (IPO) in London, pending approval from British regulators. is in progress.
The China-founded online retailer plans to hold an informal roadshow, mainly across Europe, during which IPO-seeking companies will answer questions from large investors and seek investment opportunities, one of the people said. It will test your will.
The sources declined to be identified because they were not authorized to speak to the media.
A spokesperson for Singapore-based Shein declined to comment.
Reuters reported in June, citing sources, that Mr. Schein had secretly submitted documents to Britain’s market regulator in early June, threatening the company’s potential London listing later that year. The process has started.
The company was valued at $66 billion in a funding round last year, but began considering a London IPO earlier this year after initial plans for New York stalled due to opposition from U.S. lawmakers.
Another person familiar with the matter said Mr. Schein was working towards introducing the float this quarter, subject to approval from Britain’s market watchdog the Financial Conduct Authority.
As Shein, known for its $5 tops and $10 dresses, prepares to make its debut on the market, the company’s worker treatment and environmental record have come under increasing scrutiny.
Whether the fast-growing company can convince major global institutional investors of the soundness of its business case and financial health will depend on whether it can match the $66 billion valuation it achieved last year. It will affect what happens.
Shein’s preparations for a possible London listing mark a shift from long-running U.S. IPO plans that have encountered obstacles at home and abroad, Reuters reported.
The group secretly filed for an IPO with the U.S. Securities and Exchange Commission in November, according to people familiar with the matter, at the same time seeking approval from China’s securities regulators.
However, the China Securities Regulatory Commission told Shine earlier this year that it would not recommend an IPO in the U.S., citing issues with the company’s supply chain, Reuters reported.
Shein’s plans for a London stock listing still require CSRC approval, and it remains unclear whether the company has received any guidance from Chinese regulators.
As of Thursday, a review of the CSRC website, which publishes approved offshore IPO candidates, had not mentioned Shein.
Shein’s financial numbers are not publicly available, but analysts at Bernstein said in April that the company’s net income more than doubled to $2 billion from $700 million last year, with a profit of 4.4% of sales. estimated as the rate.
The sale of Shayne shares would provide a boost to London’s moribund IPO market.
There were just nine new listings in the UK this year, compared with 18 in 2023, according to data from Dealogic. It lags behind other European countries and ranks 10th among listing venues in Europe, the Middle East and Africa in terms of IPO value.
The UK’s market watchdog is rolling out a raft of new rules this summer to facilitate and encourage companies to list on the London Stock Exchange, as it aims to catch up with New York and the European Union after Brexit. The enactment proceeded at a rapid pace.
Schein has faced pushback from several European governments, with Germany, Austria, Denmark, France and the Netherlands writing a joint letter last week urging European Union authorities to enforce local standards on online platforms. and expressed support for the abolition of tariff exemptions. Parcels under 150 euros.
Investors say the removal of these “bare minimum” tax breaks could hurt Shein’s profitability.
