Shein shifts IPO focus to London in response to U.S. regulatory challenges

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Shein is shaking up its IPO plans, pivoting towards a London listing following obstacles in the U.S. market. Despite initial intentions to go public in New York, regulatory challenges and criticism from U.S. lawmakers have prompted the company to explore a listing on the London Stock Exchange (LSE).

Reports suggest that Shein, valued at $66 billion, is gearing up to file with the LSE this month. While the U.S. IPO remains a possibility, the company faces hurdles on multiple fronts, including supply chain issues and regulatory scrutiny.

Shein’s move towards a London listing underscores the challenges faced by Chinese companies seeking overseas IPOs. Despite relocating its headquarters to Singapore, Shein is still subject to Chinese regulatory approval due to its reliance on Chinese manufacturers.

The decision to list in London could be a significant development for the city’s IPO market, which has seen fewer listings compared to other European markets this year. It also highlights the complexity of regulatory environments for global companies, especially those with ties to China.

While Shein’s IPO plans are still in flux, the company’s potential listing in London could be one of the largest globally this year, signaling a new chapter for the fast-fashion giant as it navigates regulatory challenges and strives for global expansion.

(Source: The Guardian | Reuters)

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