Shein London IPO Nears as Parliament Scorns Listing
Shein London IPO Nears as Parliament Scorns Listing
Skeptics say the fast-fashion retailer uses slave labor to hold down prices
Shein fast-fashion company is preparing to list on the London Stock Exchange.
Company valuation may decline further if the fundraising trend continues.
U.K. lawmakers sound skeptical but have so far taken no action to prevent the IPO.
Shein IPO nears on the London Stock Exchange
Fast fashion is set for one of its biggest initial public offerings (IPOs) in years, with Shein set to debut on the London Stock Exchange (LSE) soon, according to Sky News.
Sky News, citing sources familiar with the matter, said a confidential filing could come as soon as next week. The filing will unveil specifics around Shein’s financials and perhaps of more interest, how much the company plans to fund through the IPO.
The fashion giant raised $2 billion at a $66 billion valuation in its latest round of fundraising last May. In 2022, the company raised funds at a $100 billion valuation.
That trend in declining the company’s value may continue, given the company’s troubles with listing in the United States, which it has since abandoned amid heightened regulatory scrutiny and pushback from U.S. lawmakers.
U.K. lawmakers skeptical over listing
The concern about Shein is also ongoing abroad. British lawmakers are pushing for increased scrutiny of the company ahead of its potential listing. Some lawmakers have even said flat out that Shein should not get a listing on the LSE. Alicia Kearns, chair of Parliament’s Foreign Affairs Committee, is one example.
Meanwhile, the chair of the International Development Committee, Sarah Champion, said she believes the company uses modern slavery to deliver outrageously low prices.
Plus, the chair of Parliament Business and Trade Committee, Liam Byrne, has stated that there should be a deeper review of Shein, especially given the concerns from the U.S. Congress.
The U.K. is headed toward a general election in July. That could prevent Shein from getting the necessary scrutiny some in Parliament believe is deserved.
For now, however, Parliament hasn’t taken any official action that would prevent Shein from listing on the LSE. This leaves the company open to moving forward with filing for its IPO in the near future. That said, markets should see the confidential filing sometime in the next couple of weeks.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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