In 12 years, the Chinese fast-fashion behemoth has exploded in size and now reaches over 150 countries. Its $5 dresses and accessories have caught the attention of younger shoppers looking to get more for less.\u00a0<\/p>\n
As it has grown, Shein has been in the crosshairs of American lawmakers. It initially planned to list its shares in the U.S., but it has since shifted its gaze to London, where it reportedly plans to float in the coming weeks.\u00a0<\/p>\n
Although Shein has not officially announced a date, its eventual IPO would be London\u2019s most high-profile in years.<\/p>\n
What do we know about the IPO?<\/strong><\/h2>\nIt is coming very soon and it\u2019s probably going to happen in London.<\/p>\n
Singapore-headquartered Shein is preparing to file a prospectus for its IPO that could value it at around \u00a350 billion ($63.7 billion), Sky News <\/em>reported<\/a> Sunday. It could go public as early as this week.\u00a0<\/p>\nShein was preparing to list in the U.S., but ran into problems over the company\u2019s alleged use<\/a> of cotton from China\u2019s Xinjiang region, where ethnic minorities, including the Uyghurs, live. The company has argued that it has a zero-tolerance policy for forced labor.\u00a0\u00a0\u00a0\u00a0<\/p>\nIts environmental practices have also been a cause for concern for countries<\/a> that see them as unsustainable.\u00a0<\/p>\nThe online retailer tried to swiftly move on by courting a London listing, but may find these issues continue to make life awkward, AJ Bell\u2019s Russ Mould suggests.\u00a0<\/p>\n
\u201cShein may find the glare of a public market listing uncomfortable given concerns about its governance, supply chain and business practices,\u201d he said in a note Monday.\u00a0<\/p>\n
![\"people](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/06\/GettyImages-1734340593-e1717428079948.jpg?w=1440&q=75\"\/)
Shoppers queuing up at a Shein pop-up inside Forever 21 in Ontario, California. <\/figcaption>Allen J. Schaben\u2014Los Angeles Times\/Getty Images<\/p>\n<\/div>\n
Why does it matter?<\/strong><\/h2>\nShein\u2019s float has been long coming, and could be one of the most significant ever in the retail sector. It would certainly be among London\u2019s biggest IPOs in recent memory, following commodities company Glencore\u2019s in 2011.\u00a0<\/p>\n
In 2022, the company was valued at $100 billion<\/a>, overtaking the combined size of H&M and Zara parent Inditex.\u00a0<\/p>\nThat\u2019s been driven by Gen Z\u2019s strong appetite for low-cost clothing and Shein\u2019s savvy use of social media to appeal to users\u2014whether in the U.S., U.K., or elsewhere.<\/p>\n
\u201cShein has succeeded in tapping into the rising popularity of online-only fashion retailers among young British women and it is now a key competitor in the world of young fast fashion in the U.K.,\u201d Tamara Sender Ceron, the associate director of fashion and retail at market intelligence firm Mintel said in a 2022 report<\/a>.\u00a0<\/p>\nWhat would Shein\u2019s IPO mean for London?<\/strong><\/h2>\nIf Shein lists in London, it could not come at a better time for the U.K. markets. Over recent years, a number of companies have either delisted from the London Stock Exchange or chosen to list elsewhere, in large part over concerns about being undervalued. Arm, the British chip company, is a particularly striking example of a major IPO that could have ideally been London\u2019s, but wasn\u2019t.\u00a0<\/p>\n
Keen to avoid this happening again, officials from the U.K.\u2019s opposition Labour Party\u2014widely expected to win the country\u2019s general election next month\u2014recently held talks with Shein\u2019s executive chairman Donald Tang in the hopes of nudging the company to list there, The Times of London<\/em><\/a> reported.\u00a0<\/p>\nGiven its size, the company\u2019s IPO would bring London a much-needed vote of confidence, but that doesn\u2019t mean Shein would no longer be scrutinized, with Britain\u2019s lawmakers recently<\/a> also calling for the company to be probed.\u00a0<\/p>\nOf course, London is calling but Shein isn\u2019t guaranteed to answer. \u201cThe question for U.K. traders is will this [Shein filing its prospectus] lift the spirits of the FTSE 100, after the index fell 0.77% last week. If this does happen this week, then it would take London a step closer to being Shein\u2019s IPO destination,\u201d Kathleen Brooks, research director at XTB, said in a note.\u00a0<\/p>\n
As for Shein itself, whether you\u2019re a fan of the fast fashion firm or not, there\u2019s no disputing that its listing will be a major event in retail. If its IPO goes smoothly, it could help the company gain more credibility among investors, regulators and buyers, not to mention further growth capital.\u00a0<\/p>\n
Whether that will be enough to fend off the bad press and let its low-cost fashion do the talking remains to be seen.\u00a0<\/p>\n<\/div>\n
Shein was preparing to list in the U.S., but ran into problems over the company\u2019s alleged use<\/a> of cotton from China\u2019s Xinjiang region, where ethnic minorities, including the Uyghurs, live. The company has argued that it has a zero-tolerance policy for forced labor.\u00a0\u00a0\u00a0\u00a0<\/p>\n Its environmental practices have also been a cause for concern for countries<\/a> that see them as unsustainable.\u00a0<\/p>\n The online retailer tried to swiftly move on by courting a London listing, but may find these issues continue to make life awkward, AJ Bell\u2019s Russ Mould suggests.\u00a0<\/p>\n \u201cShein may find the glare of a public market listing uncomfortable given concerns about its governance, supply chain and business practices,\u201d he said in a note Monday.\u00a0<\/p>\n Allen J. Schaben\u2014Los Angeles Times\/Getty Images<\/p>\n<\/div>\n Shein\u2019s float has been long coming, and could be one of the most significant ever in the retail sector. It would certainly be among London\u2019s biggest IPOs in recent memory, following commodities company Glencore\u2019s in 2011.\u00a0<\/p>\n In 2022, the company was valued at $100 billion<\/a>, overtaking the combined size of H&M and Zara parent Inditex.\u00a0<\/p>\n That\u2019s been driven by Gen Z\u2019s strong appetite for low-cost clothing and Shein\u2019s savvy use of social media to appeal to users\u2014whether in the U.S., U.K., or elsewhere.<\/p>\n \u201cShein has succeeded in tapping into the rising popularity of online-only fashion retailers among young British women and it is now a key competitor in the world of young fast fashion in the U.K.,\u201d Tamara Sender Ceron, the associate director of fashion and retail at market intelligence firm Mintel said in a 2022 report<\/a>.\u00a0<\/p>\n If Shein lists in London, it could not come at a better time for the U.K. markets. Over recent years, a number of companies have either delisted from the London Stock Exchange or chosen to list elsewhere, in large part over concerns about being undervalued. Arm, the British chip company, is a particularly striking example of a major IPO that could have ideally been London\u2019s, but wasn\u2019t.\u00a0<\/p>\n Keen to avoid this happening again, officials from the U.K.\u2019s opposition Labour Party\u2014widely expected to win the country\u2019s general election next month\u2014recently held talks with Shein\u2019s executive chairman Donald Tang in the hopes of nudging the company to list there, The Times of London<\/em><\/a> reported.\u00a0<\/p>\n Given its size, the company\u2019s IPO would bring London a much-needed vote of confidence, but that doesn\u2019t mean Shein would no longer be scrutinized, with Britain\u2019s lawmakers recently<\/a> also calling for the company to be probed.\u00a0<\/p>\n Of course, London is calling but Shein isn\u2019t guaranteed to answer. \u201cThe question for U.K. traders is will this [Shein filing its prospectus] lift the spirits of the FTSE 100, after the index fell 0.77% last week. If this does happen this week, then it would take London a step closer to being Shein\u2019s IPO destination,\u201d Kathleen Brooks, research director at XTB, said in a note.\u00a0<\/p>\n As for Shein itself, whether you\u2019re a fan of the fast fashion firm or not, there\u2019s no disputing that its listing will be a major event in retail. If its IPO goes smoothly, it could help the company gain more credibility among investors, regulators and buyers, not to mention further growth capital.\u00a0<\/p>\n Whether that will be enough to fend off the bad press and let its low-cost fashion do the talking remains to be seen.\u00a0<\/p>\n<\/div>\nWhy does it matter?<\/strong><\/h2>\n
What would Shein\u2019s IPO mean for London?<\/strong><\/h2>\n