Shein is advancing its plans for a possible IPO in London.
- The company has added Barclays Plc and UBS Group AG as bookrunners.
- Shein is also collaborating with renowned financial institutions like Goldman Sachs.
- The IPO could happen early next year, pending ongoing discussions.
- Scrutiny is anticipated due to concerns over tax practices and labour conditions.
Shein is taking significant steps towards a potential initial public offering (IPO) in London by enlisting Barclays Plc and UBS Group AG as bookrunners. This move, as reported by Bloomberg, underscores Shein’s commitment to advancing its IPO plans.
In its preparation efforts, Shein is also working closely with several major financial entities, including Goldman Sachs Group Inc, JPMorgan Chase & Co, and Morgan Stanley. These collaborations indicate the strategic approach and importance placed on a successful IPO launch.
The potential listing on the London Stock Exchange is tentatively targeted for early next year. However, sources indicate that discussions are still ongoing, and the specifics of the flotation may be subject to change as the company fine-tunes its approach.
The company has been conducting informal European roadshows recently to address questions and garner interest from key investors. These roadshows form part of the strategic efforts to prepare the market for the potential IPO and ensure transparency with stakeholders.
However, Shein’s path to a public listing comes with challenges, particularly concerning its usage of a legal tax loophole for overseas shipments, which some industry leaders argue provides an unfair advantage. Additionally, questions regarding Shein’s labour practices are prominent, with recent remarks from Prime Minister Sir Keir Starmer indicating that any company seeking to list in London would be scrutinised over its labour practices.
Shein’s IPO journey is marked by strategic planning and scrutiny over business practices.
